Power of Attorney

A power of attorney is a written document that gives one person the authority to act on  behalf of another. There are two types of powers of attorney: medical, which empowers the agent to make healthcare decisions, and financial, which allows the agent to make decisions regarding finances. A person using  the legal authority granted to them by this type of legal document is an agent. You can revoke a power of attorney at any time, as long as you are mentally competent. When drafting the original document, you may consider limiting the length of the power of attorney so that it automatically revokes upon a specified time.

Types of power of attorney

When getting a power of attorney drafted, you can choose between a general power of attorney or a special power of attorney, and whether the power of attorney is durable or not.

• General power of attorney - A general power of attorney gives the agent the power to perform almost any legal act on your behalf for a specified period of time. This can include the ability to manage bank accounts; sell, exchange, buy or invest any assets or property; purchase and maintain insurance; and enter into any binding contracts on your behalf. Because the authority granted is so broad, this type of power of attorney should only be used if a special power of attorney will not suffice and if the agent is completely trustworthy and financially responsible.

• Special/limited power of attorney - A special/limited power of attorney, allows you to give only special powers to the agent for a specified period of time. When drafting a special power of attorney, you are required to list the particular actions or decisions over which the designee has power of attorney.

• Durable power of attorney - A durable power of attorney remains valid even if you become incapacitated or unable to handle your own affairs. When drafting a general power of attorney, if you do not specify that you want your power of attorney to be durable, it will automatically end if you become incapacitated in the future. A general or special power of attorney may be made "durable" with appropriate language. This generally eliminates the need for a court to establish a guardian and conservator for the incapacitated person. This will allow your attorney-in-fact to make decisions or manage affairs on your behalf for the duration of the incapacity. For example, in a "living will" or health care power of attorney, this authority may extend to decisions for medical purposes including decisions regarding terminating or limiting medical care in appropriate cases. You should have complete trust in who you grant such broad and powerful legal authority.