What Is the Difference Between Medical and Financial Powers of Attorney?

A crucial facet of your estate plan is designating the powers of attorney. With this, it is important to understand the different types of powers of attorney that exist in the state of Maryland, such as medical and financial powers of attorney. Continue reading to learn which powers of attorney designations best fit your estate plan and how one of our experienced attorneys at our Montgomery County power of attorney law firm, JD Katz, PC, can help you make this determination.

How are powers of attorney defined in the state of Maryland?

Powers of attorney is a crucial document of your estate plan that grants power to a designated individual whom you trust and who can act on your behalf should you ever become incapacitated and unable to do so on your own. Regarded as an agent, this individual can be a family member, friend, or business entity that can be trusted to handle your various affairs, such as medical or financial affairs. That said, the state of Maryland finds that powers of attorney designations are necessary to prepare for if and when you can no longer act on your own behalf for any number of reasons.

What is considered a medical power of attorney?

The state of Maryland allows for a medical power of attorney. More specifically, this power of attorney document gives you the right to appoint a trusted individual to make certain critical medical decisions on your behalf. An example of a pivotal medical decision can be accepting or refusing medical treatment.

What is considered a financial power of attorney?

Additionally, you are entitled to a financial power of attorney in the state of Maryland. With this, there are different types to consider, and they read as follows:

  • A general power of attorney: This power of attorney allows you to grant your agent power of attorney over financial matters that can be for both personal or business transactions.
  • A non-durable power of attorney: This power of attorney is only enforceable when it comes to certain established financial transactions. That is, once you become incapacitated and the transaction ends, the power of attorney will be terminated.
  • A durable power of attorney: This power of attorney will take effect once you become incapacitated and will stay in effect until you pass away. In other words, this power of attorney gives your agent full control over your assets.

With all this considered, you must select a power of attorney that best suits your situation. For guidance with this, you must consult with a skilled Montgomery County elder law attorney at your earliest convenience.

Contact our experienced Maryland firm

Our firm has experience with matters of estates & elder law, business law, tax law, and litigation. Contact JD Katz, PC today for assistance.