A Power of Attorney is a legal document that allows you to appoint someone to handle your personal matters in the event you cannot. A Power of Attorney, however, does not come in a one-size-fits-all. There are different types of Powers of Attorney to manage your finances, health care decisions, and even your pets.
Why Do I Need a Power of Attorney?
We’re going to do a breakdown of each type of Powers of Attorney. But first, you may be asking why you would need one.
Suppose you become seriously ill where you are incapacitated, or you are travelling and will be away for weeks or even months. Who will pay your bills? Manage your finances? Run your business? This is where a Power of Attorney steps in to take care of your affairs.
When you’re giving Power of Attorney, you (known as the principal) are granting authority to a person (known as an agent or attorney-in-fact) of your choice that you named in the document to act on your behalf. With a Power of Attorney, depending upon what powers you grant, your agent can:
- File your income taxes
- Sign contracts
- Manage financial accounts
- Make legal decisions
- Sell property
A Power of Attorney does not have to be a lawyer. It should be someone you trust that will carry out their duties as you stipulated in the document. A Power of Attorney is a critical tool that should be part of your estate planning arsenal.
Types of Powers of Attorney
The great thing about a Power of Attorney is that it can be tailored to your specific needs. You can give your agent carte blanche powers or limited authority. Also, you can set limits on the length of time the Power of Attorney is valid. It’s up to you and your situation how much authority you want the Power of Attorney to have.
Each type of Powers of Attorney has its specific purpose:
A Power of Attorney for Every Need
As you can see, there is a Power of Attorney document for any type of situation where you would need someone to manage financial or business affairs on your behalf. If you are ill and cannot manage your affairs, or you are just not available to perform certain financial or legal tasks due to travel or other circumstances, there is a Power of Attorney for just about every need. Gentreo allows you to customize a Power of Attorney for your situation. You can securely store your documents in the Gentreo Digital Family Vault where they can be accessed anytime from anywhere.