-A Power of Attorney is a legally recognized individual that you pick to help in fulfilling some or all of your obligation when you are unable to, transferring your ability to perform some tasks to another trusted individual. It is expected that the person acts in your best interest. The person you designate becomes your Attorney-in-Fact.
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Types of Powers of Attorney
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Based on Capacity
There are two types of Powers of Attorney based on capacity; Durable and Non-Durable Powers of Attorney.
A Durable Power of Attorney is needed if you wish to transfer your financial obligations to a trusted family member or a friend when you become incapacitated. Durable in the sense that the Attorney-in-Fact (the trusted person or agent) will have the ability to decide for you when you are alive but incapacitated.
You need a Non-Durable Power of Attorney if you have the mental capacity but wish to allow a trusted fellow or agency to make the decision for you.
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Based on Commencement of Authority
Power of Attorney can also be classified as Immediate or Spring.
An Immediate Power of Attorney is one that has instant authority over your financial obligations. In most states, you need a ‘statutory’ form. The form automatically denotes immediate authority.
A Spring Power of Attorney is one that becomes active when you become incapacitated only. You can also create a Long Term “Spring’ Form that means he or she becomes your Power of Attorney-in-Fact only if you are incapacitated or some findings suggest such. You may download a free Power of Attorney form here.
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Who You Should Choose
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It is important to thoroughly think about who you choose as your Power of Attorney. This is because of the weight of the responsibility you trust the individual with.
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Your Eldest Child or Grandchildren
Most people usually name their adult children or grandchildren as their Power of Attorney. However, you can also choose a close relative or friend or even a trusted neighbor.
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Choose Successor
You should also consider choosing one or more people as your Attorneys-in-Fact. This will prevent you from having to update it when the person dies or currently unavailable.
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Don’t Make It Jointly
Some people do join the chosen Power of Attorneys together. You shouldn’t do that to prevent any logistical challenges when one of them is absent.
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Creating a Power of Attorney form is simple and easy. You may a get free Power of Attorney form for California, Ohio or any other state of the US on this website.