A Power of Attorney (POA) is a foundational legal document that lets you grant another person the authority to act on your behalf. The person signing the document is called the Principal.
Types of Power of Attorney
There are two primary categories of POA, each serving a distinct purpose:
Financial & Property POA
This document gives legal authority to an individual (called the Agent or Attorney-in-Fact) to make financial, property, and general legal decisions for you. This could range from paying bills and managing bank accounts to selling real estate.
Health Care POA
This type grants the Agent legal authority to make medical and healthcare decisions for you if you're unable to do so yourself.
Note: This document may be called a "Health Care Proxy," "Advance Directive," or "Medical Power of Attorney" in different states, but the function remains the same.
Authority and Durability
Scope of Authority
The Principal has complete control over the scope of the POA. You can grant your Agent broad legal authority (to handle nearly all your affairs) or very limited authority (for a single transaction, like signing papers at a specific closing).
POAs are frequently used to help manage affairs in the event of the Principal's illness or disability, or when the Principal cannot be physically present to sign legal documents.
Effective Period
A standard POA is only effective during the life of the Principal. Critically, a standard POA terminates if the Principal becomes mentally incapacitated.
A Durable Power of Attorney is different and essential for estate planning:
It is designed to withstand the physical or mental disability of the Principal.
A Durable POA remains in effect even if you become incapacitated and can no longer make decisions for yourself.
Like all POAs, it is only effective while the Principal is alive.
Advanced health care directive/health care power of attorney:
$215 (includes everything)
General power of attorney for finance &property matters:
$215 (Includes everything)
limited (special) power of attorney for finance & property matters:
$215 (Includes everything)
Uniform statutory form power of attorney:
$215 (Includes everything)
Revocation of power of attorney:
$215 (Includes everything)