Powers of Attorney

A Power of Attorney (POA) is a written document in which you (“the Principal”)designate another person (“the Agent or Attorney-in-Fact”) to act on your behalf in making property, financial and other legal decisions. The most common types of Powers of Attorney include:

* Durable Power of Attorney
A Durable Power of Attorney allows the Agent or Attorney-in-Fact to act for the Principal even after the Principal is not mentally competent or physically able to make decisions. The Durable Power of Attorney may be used immediately, and is effective until it is revoked by the Principal, or until the Principal’s death.
* Nondurable Power of Attorney
A Nondurable Power of Attorney is often used for a specific transaction, such as the closing on the sale of a residence, or the handling of the Principal’s financial affairs while the Principal is traveling out of the country. A Nondurable Power of Attorney takes effect immediately and remains in effect until it is revoked by the Principal, or until the Principal becomes mentally incompetent or dies.
* Springing Power of Attorney
A Springing Power of Attorney becomes effective at a future time when an Agent, or another third party, such as the Principal’s physician, determines that the Principal in no longer competent to handles his or her own financial affairs. A Springing Power of Attorney remains in effect until the Principal’s death, or until revoked by a court.

Powers of Attorney are important legal documents, and should be given only after careful consideration. A licensed attorney in your state can:

* Provide you with advice about the powers that are appropriate to be delegated
* Provide counsel on the choice of an Agent.
* Outline the Agent’s legal and fiduciary obligations while acting under a Power of Attorney.
* Ensure that the Power of Attorney is properly executed and meets all legal requirements.