What is a Power of Attorney?
You, as “principal,” designate another individual or a bank as your “agent” or “attorney in fact” to act for you in handling your affairs; for example, to sign checks and make deposits, pay bills, contract for medical or other professional services, sell property, obtain insurance and do all the things you do in managing your day-to-day affairs.
Planning for lifetime disability
Most people are aware of the fact that they should have a Will and an estate plan so that upon death their estates can be administered and distributed to their beneficiaries promptly and efficiently. However may people fail to plan for lifetime disability.
What are the two main types of Power of Attorney?
General Durable Power of Attorney
A Durable Power of Attorney is a written Power of Attorney which contains words such as: “This Power of Attorney shall not be affected by my disability,” or “This Power of Attorney shall become effective upon my disability.” This document specifically lists which powers it gives to the agent. In order to be valid, it must be signed by you before you become disabled.
Durable Medical Power of Attorney
Is the document authorizing another to act as one’s agent or attorney during incapacity but only limited to medical decisions.