When you are conducting business, have you ever considered a getting a power of attorney to handle your business affairs? What is it, how does it work?
A power of attorney is a legal document that authorizes someone to act on your behalf when you are unable to do so. You are called the principal or donor. You are the person who gives the authority to act on your behalf. It can be for a legal matter, private affairs like paying for bills or related to business, or even real estate. So, you should take careful consideration who you grant these powers to because they will be signing your name to legal documents.
Types of powers of attorneys
There are numerous types of powers of attorneys. They include:
- Limited- this type of power of attorney allows someone to take care of your financial needs.
- General- this type of power of attorney handles finances as well and can also buy life insurance and possibly handle any real estate deals.
- Durable or enduring- this type is for anytime you become mentally ill after being involved in an accident or due to illness. This power of attorney will act on your behalf.
- Springing- this type of power of attorney does not become effective until a specific date or event.
- Healthcare- this is for anytime you need someone to make medical choices for you. They will act as your agent if you cannot make the decisions yourself. It can be due to mental illness or even being unconscious.
If you choose to get a power of attorney, knowing the different types available is beneficial, so you know what type may work for you. Not all power of attorney options is available in all states. It is good to check your state to see what is available.