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A general durable power of attorney is a key part of estate planning.
What is durable general power of attorney. The document is also known as a durable power of attorney for finances. There are several types of power of attorney. Power of attorney terminology. A power of attorney poa is a person who has legal authority to act on behalf of someone else.
Wills and trusts are usually the first things that come to mind as an individual considers their estate plan or potential estate plan but the importance of having thorough and detailed power attorney documents cannot be overstated. The two types of durable power of attorney are immediate and springing the first type takes effect as soon as the durable power of attorney is executed. The poa can take effect immediately or can become effective only if you are incapacitated. A general power of attorney is one that allows the agent to make all personal and business decisions a temporary power of attorney is one with a limited time frame.
There are two general types of a poa. A durable power of attorney differs from a traditional power of attorney in that it continues the agency relationship beyond the incapacity of the principal. If ever required a durable power of attorney can be revoked or changed as long as the principal is still mentally competent to act. Among the most common are special general and medical power of attorney.
A general power of attorney grants wide legal authority to act on a person s behalf including filing tax returns paying bills borrowing money and so on. This role is highly respected and also critical to the person who grants such control.
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