The Types of Power of Attorney

Every person wants to help out their loved ones during hardships. Power of attorney allows you to settle all your legal obligations if you become incompetent to make decisions after an accident or latent disease. There are several types of power of attorneys depending on the purpose, the authority level of the agent, time of activation, and lifeline of the documents. It is essential that you choose the correct kind of power of attorney matching your needs.

What is a Power of Attorney?

Power of attorney or POA is a legal document allowing the writer, called the principal, to grant authority to another person, called an agent, to make legal and financial decisions on their behalf if they are incapable of making decisions for themselves. Moreover, the principal can name multiple agents in POA. However, the documents need to be legalized before the principal is declared incompetent.

Types of Power of Attorney

  1. General power of attorney: This POA grants unrestricted permission to the agent to handle the transactions for the principal. Since an agent can use the general power of attorney in harmful ways, the principal should make prudent decisions while choosing the agent. Moreover, the transactions should be kept in check.
  2. Special power of attorney: It is also called a limited power of attorney. Most power of attorney documents define the agent’s authority and scope about what they can manage and what they cannot on the principal’s behalf; hence, most POAs created are limited POAs.
  3. A durable power of attorney: Most power of attorneys are the durable kind since most principals create them to continue to handle their transactions after their incapacitation. This type of durable power of attorney enables the agent to complete the financial and legal affairs of the principal in the future.
  4. Non-durable power of attorney: It is created when the principal cannot be physically present in a place to conduct a transaction. A non-durable POA is inactivated when the mentioned purpose is achieved, the principal becomes incompetent, or when the terms are revoked.

About Castle Wealth Group

Do you want a power of attorney with a reliable and quality company assisting you? At Castle Wealth Group, we build a perfect strategy for your retirement, including income planning, investment planning, tax planning, health care planning, and legacy planning. Visit our website or call us at 844.885.4200 or email us for your financial advice.

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