Two Types of Power of Attorney
A power of attorney is a legal document which authorizes a person to act on another person’s behalf. There are two types of powers of attorney: A durable power of attorney and a non-durable power of attorney.
This article describes these two types of powers of attorney, the differences of these documents and how to create a power of attorney.
What is a Power of Attorney
A power of attorney is a legal instrument in which an individual appoints another person or persons to act on his or her behalf. The appointed person is referred to as an “agent.” The agent may be empowered to perform a broad spectrum of functions, or the agent may receive limited power to perform specified tasks.
The power of attorney can contain powers relating to financial matters, insurance matters, benefits matters, military issues, tax issues, debt matters and more. A power of attorney can be tailored to the specific needs and desires of the person creating the document. Consequently, the power of attorney can be different for each person who creates one.
What are the Two Types of Powers of Attorney
There are two different types of powers of attorney. Initially, there is a durable power of attorney. A durable power of attorney is one which is effective at the time it is executed. Secondly, there is a non-durable power of attorney.
The non-durable power of attorney does not become effective until the person who executed the document becomes incapacitated and unable to perform the functions specified in the document.
Durable Power of Attorney
As indicated above, the durable power of attorney becomes effective as soon as the power of
attorney is properly executed. As a result, the agent is immediately empowered to perform the tasks specified in the power of attorney document. Due to this issue, one must have complete trust in the person appointed as the agent, because the agent can act without consulting the person who executed the power of attorney.
The power of attorney is frequently preferred because it is automatically effective, and does not require any other circumstances in order to be effective, making it more convenient.
Non-Durable Power of Attorney
A non-durable power of attorney does not become effective until the person executing the power of attorney becomes incapacitated. In other words, the agent does not have the power to act on the person’s behalf until that person is unable to do so on their own.
A non-durable power of attorney allows the person who issued the power of attorney to continue to retain sole power to handle his or her own affairs until the time of incapacity.
How to Create a Power of Attorney
If one seeks to execute a power of attorney, it is highly advisable to contact an attorney. Alternatively, a power of attorney form may be available at a legal stationary supply store or on the Internet.
However, it is crucial that one obtains the proper legal form, one that covers any and all legal requirements of one’s jurisdiction. Additionally, it is important to follow directions in completing the form in order for the power of attorney to be legally proper and effective.