Power of Attorney

A Power of Attorney lets you appoint someone you trust to manage important financial and legal matters on your behalf. In short, it is an authorization for another to act in your place for the purposes you set forth in a document. You can choose to have it take effect immediately or only go into effect in the event of illness or incapacitation.

Common uses for a Power of Attorney include authorizing someone to handle a complex legal transaction or manage your financial affairs while you're on vacation. It can be broad and allow another to perform anything you can do or it can be specific to one activity. The power can be effective for one day or for an unlimited amount of time.

General Power of Attorney

This type of instrument allows the attorney in fact to perform all acts the individual can perform but would in most cases not be effective if the individual becomes mentally incapacitated.

Durable Power of Attorney

This instrument allows the attorney in fact to perform all acts for the individual and would remain effective during a period of mental incapacity.

Springing Power of Attorney

This instrument becomes effective only upon the happening of a specified event, hence it springs into life. Illness, vacation, etc. might all be springing events making the document effective. These conditions can sometimes be difficult to establish.

Limited Power of Attorney

As stated above this instrument is effective for a limited purpose. A common example is an attorney who receives a power of attorney from a client selling a home to attend the real estate closing and to sign papers on the client's behalf and return the check to the client. It is limited and it expires as soon as the act is completed.

A power of attorney expires with the death of the grantor of the power. for most people, a durable power of attorney is the best choice.

Guardianship

 While we do not "plan" for guardianships it is important to realize that it is possible that we may be in need of a guardian at some point in the future. They are court approved. There is no estate tool for creating a normal guardianship. There are costs associated with the action and they can be costly. A power of attorney can sometimes delay the need for a guardian for quite a period of time. Organization of assets can help reduce the costs.

Guardianships are processed through the Superior Court and can run into the thousands of dollars. Sometimes they cannot be avoided but as noted above a power of attorney may delay the need and in many cases may eliminate the need altogether.

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