For many people, the idea of dealing with their legal matters can be intimidating. For many other people, they may not have the time to deal with their legal issues themselves. The good news is that there are other options available! One option is to set up a power of attorney. A power of attorney allows you to appoint someone else to act on your behalf in regard to your finances and other important tasks.
A power of attorney is a legal document that lets someone else act on your behalf. Power of attorney can be an effective way for you to authorize someone to manage your finances, handle your healthcare decisions, and perform other legally binding tasks on your behalf. You might need the legal assistance of a Cherry Hill estate planning lawyer for preparing a power of attorney. There are multiple types of attorneys, including general, limited, and durable power of attorney.
Different Types of Power of Attorney
General power of attorney
A general power of attorney is a legal document that allows an individual to appoint someone else as the agent and attorney for their estate. The person you nominate as your agent has the authority to come into your home, sign on your behalf, and conduct other business on your behalf. If you’re incapacitated or temporarily unable to make decisions for yourself, this person can also take care of some of those decisions, such as handling financial transactions.
Limited power of attorney
A limited power of attorney is a legal authorization given to an agent by another party. The power is limited to specific tasks and can be revoked by the person granting this power at any time. Although it may seem like a good idea for someone to have full power over your finances, such as your spouse, parents, or trusted friends, you should think twice before giving anyone full power of attorney over your finances because there is no way to do so revoke that authority.
Durable power of attorney
A durable power of attorney is a legal document that allows you to appoint another person to have the legal authority to make decisions for you if you are unable to. You can also create different levels of power of attorney so that your appointed person has the ability to make more or less decisions. A person acting as an agent with a durable power of attorney can make financial decisions like authorizing loans, paying taxes, and managing insurance policies. This is often done when the person who was granted the power has become incapacitated by old age or illness.