When planning for your future, it is important to think about more than just drafting a will. While wills are incredibly important in estate planning, another important tool to consider is a power of attorney. This is a document that gives authority to another party, known as the agent, to handle matters on your behalf. Often, the agent will be permitted to make decisions on medical, legal, or financial matters.
Of course, everyone’s situation is different so before deciding to legally grant authority to an agent, it is important that you do some research. There are a number of different options for powers of attorney that should be taken into consideration when assessing which one is best suited for you.
The types of powers of attorney that you may wish to discuss with an experienced estate planning attorney are as follows:
- General Power of Attorney: This grants power to your Agent to perform the acts that you normally would. Some of these may include filing taxes, executing a contract, and borrowing money from a lender. This takes effect immediately and will expire when you revoke it, become incapacitated, or pass away.
- Durable Power of Attorney: This authorizes the Agent to act on your behalf in a similar way to the General POA. The main difference between the two is that this type of POA will remain in effect even if you become incapacitated. This, with a healthcare directive, can be used to make medical decisions about the Principal’s end-of-life care and handle all other affairs.
- Limited Power of Attorney: This will only grant certain authority for the agent. For example, if you and your spouse are purchasing a home together but your spouse cannot be at the closing meeting, you may want to institute a limited power of attorney to sign on their behalf.
- Springing Power of Attorney: This is only effective after a triggering event, including mental or physical disability.
Of course, it is essential to only grant authority to an Agent that you can trust. If you have questions about creating a power of attorney, whether it is for a broad range of actions or just for one particular instance, contact our firm today.
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.
