What is a Power of Attorney?
A Power of Attorney is a legal document created when one person, called the principal, authorizes an Agent or Attorney-in-Fact to make property, business, finance, medical care or general authority decisions on the principal's behalf.
There are different types of Power of Attorney and below are the ones most often used:
General Power of Attorney
A General Power of Attorney gives an Agent or Attorney-in-Fact complete authority to act on behalf of the principal on matters such as finances, property, business, transactions, etc.
Special or Limited Power of Attorney
A Limited or Specific Power of Attorney is one that specifies that the Agent can do certain acts and only certain acts.
Durable/Non-Durable Power of Attorney
A Durable Power of Attorney is defined as a Power of Attorney that continues to be in effect even after the principal is unable to make decisions for him/herself or has become mentally incapacitated.
A Non-Durable Power of Attorney or a traditional Power of Attorney ceases to be enforced if the principal becomes incapacitated.
Springing Power of Attorney
A Springing type of Power of Attorney only comes into effect once the principal becomes mentally or physically incapacitated. It is ideal that the principal defines exactly what kind of event or incapacitation means for this kind of Power of Attorney to "spring" into effect.