When it comes to keeping one’s affairs in order, powers of attorney (POAs) are handy documentation individuals that might want to consider setting up. These authorizations allow trusted individuals to step up for someone – under certain circumstances – in ways that allow them to manage their affairs. These documents can be indispensable for keeping personal and financial affairs in order when someone doesn’t have capacity to act on their own behalf.
Interested individuals can use POAs to allow others to manage financial, legal and healthcare matters on their behalf under certain circumstances. Familiarizing oneself with the distinctions between the available types of POAs can help individuals choose the right one for their unique circumstances.
Medical power of attorney
Since life can be so unpredictable, one can never know if they might find themselves unable to make their own medical decisions. Suppose such a scenario plays out; having a medical power of attorney (MPOA) can make all the difference. By granting a trusted friend or relative authority, individuals can have a proxy to make healthcare decisions on their behalf. The MPOA can address choices about:
- Treatments
- Surgeries
- End-of-life care
The authorization allows the appointed agent to act in the principal’s best interest during medical emergencies.
General power of attorney
A general POA is a good place to start for individuals who want to try out POAs before they fully commit. This type of POA allows an agent to:
- Sign documents
- Make financial transactions
- Handle business operations
- Manage personal affairs
This can be a way to access temporary assistance, such as when traveling or dealing with health issues that aren’t necessarily incapacitating but require someone to manage one’s day-to-day affairs.
Durable power of attorney
When in need of something more long-term, upgrading from a general power of attorney to a durable power of attorney is a good idea. With this authorization in place, an individual can rest easy knowing the POA will endure even if they become incapacitated. A durable POA is crucial in cases where someone needs continued assistance with managing their affairs over an extended period due to:
- A long-term illness
- A catastrophic accident
- A cognition-impairing condition like dementia
Without a durable POA, family members may need to go through a lengthy and costly court process to gain control over the incapacitated individual’s affairs.
Powers of attorney come in handy for people who don’t have the capacity to manage their affairs for whatever reason. Understanding the different forms of power of attorney and consulting a legal team can help ensure that individuals make informed decisions about their personal affairs.
