An important part of estate planning is creating a power of attorney. Though nobody ever wants to imagine the day where they are unable to handle their own affairs, it is always best to have a plan in place, just in case. If you would like to learn more, please read on and get in touch with an experienced estate planning attorney. Here are some of the questions you may have regarding powers of attorney:
What is a power of attorney?
Essentially, a power of attorney is a document that allows an individual to act on behalf of another person, should they become incapacitated at some point. The incapacitated is referred to as the principal, while the one granted the authority to act on the principal’s behalf is known as the agent.
What are the different types of powers of attorney?
There are several different types of powers of attorney, each designed to address different scenarios and situations. They are as follows:
- Durable Power of Attorney: Durable powers of attorney take effect as soon as the principal becomes incapacitated, and they do not have a set period of time. Durable powers of attorney also grant the agent full control over various aspects of the principal’s affairs.
- Non-Durable Power of Attorney: These powers of attorney, on the other hand, are only applicable for a certain period of time and are generally only used for specific transactions. Once the transaction is over or the principal becomes incapacitated, the power of attorney will also end.
- Special Power of Attorney: This is perhaps the most limited scope power of attorney, as it only pertains to one key decision. For example, you may choose an agent to make certain medical decisions for you, should you become incapacitated. People also set up special powers of attorney for agents to make business decisions; such as one of their current business partners.
- Springing Power of Attorney: Springing powers of attorney only take effect when a certain event occurs, at a future time. Springing powers of attorney can either be durable or non-durable.
- Medical Power of Attorney: These are made specifically for healthcare-related decisions. They generally will only take effect once a presiding physician gives his or her consent.
If you believe you are ready to establish a power of attorney, reach out to one of our compassionate and knowledgeable attorneys. We are happy to help.
Contact our experienced Maryland firm
The attorneys at JD Katz have years of experience compassionately guiding clients in Maryland through the estate planning and administration process. Our firm also has experience with matters of elder law, business law, tax law, and litigation. For a legal team that will put your needs first, contact JD Katz today.