A Power of Attorney is a legal document that appoints another person (or persons) to act on your behalf in certain circumstances. This can include making decisions about your finances, property, health care or other matters. A POA can be used in a wide range of circumstances such as:
- If you become incapacitated;
- Unable to handle your affairs due to illness or travel; or
- Simply want someone else to handle your affairs whilst you are away.
Requirements for POA’s vary state-to-state, two categories of POA’s exist:
- General Power of Attorney: General POA’s only remain in effect while you (the Principal) have mental capacity. It allows an attorney to make decisions about your financial matters; and
- Enduring Power of Attorney (EPOA): This document remains in effect even if you lose mental capacity, it can allow attorneys to make decisions about your financial and/or health matters.
Limitations can be placed on POA’s such as they only come into effect if you lose capacity, or that attorney’s only have limited powers.
Appropriate legal advice should be sought before making a decision on the future management of all financial affairs.
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