The Power of Attorney: What is the Best Option for You?
Having a power of attorney (POA) is an important part of estate planning. A POA allows you to appoint someone to act on your behalf in the event of your incapacity or death. This person, known as your agent, will be responsible for managing your finances, making decisions about your care, and handling your assets.
When it comes to selecting a POA, there are two main types to choose from: a general power of attorney and a limited power of attorney. Each type has its own advantages and disadvantages, so it’s important to understand the differences before making a decision.
A general power of attorney allows the agent to make a wide range of decisions. This is your best option if you want to maximize the person’s freedom to handle your assets and manage your care. With a general POA, the agent will have the authority to make decisions on your behalf without having to consult you or get your approval.
On the other hand, a limited power of attorney restricts the agent’s power to particular assets. This is a good option if you want to give someone the authority to manage a specific asset or set of assets, such as a business or a real estate property. With a limited POA, the agent will only be able to make decisions related to the specific asset or assets you have specified.
No matter which type of POA you choose, it’s important to select someone you trust to act on your behalf. This person should be knowledgeable about your financial situation and have the best interests of you and your family in mind.
When it comes to selecting a POA, it’s important to consider your individual needs and circumstances. If you’re unsure which type of POA is best for you, it’s a good idea to consult with an experienced estate planning attorney.
By understanding the differences between a general power of attorney and a limited power of attorney, you can make an informed decision about which type of POA is best for you.
19 Mar 2019.