Summary: There are many different types of POA that cater to different needs of the principal. Durable, non durable and limited POA are a few to mention.
Power of attorney (POA) is a critically important document that allows you to appoint an individual of your choice to take control over your affairs on your behalf, if you are unable to do under certain circumstances / situations. At present, there are a number of different types of POA that describe the nature, scope and limits of powers that can be passed to the appointed individual. Therefore, if you are willing to create a POA, it is essential that you know their types so that you can choose them well and make the most of this arrangement.
Types of Power of Attorney
- Durable POA... this is one of the sturdiest forms of POA that allows the agent to conduct core affairs of the principle even when the latter is physically incapacitated to do so. Durable power of attorney is not bound by any specific time period and expires only after the demise of the principal.
- Non durable POA... allows the same rights and power to the agent with the only difference that it is created for a specific period of time and lapses immediately upon the incapacitation of the principal. By its nature, it may be a safer option than durable POA.
- Limited POA... also known as special POA, this form of power of attorney is created only for one or two extremely specified purposes that are usually related to financial matters like one-time bank transaction handling, sale of property etc. Limited POA ceases to exist once the specified task has been completed.
- Springing POA... this is usually designed as a safety measure against possible events that may take place in the future. Here, the principals create springing POA when they are in the best of health and mental capacity to specify what actions need to be taken in terms of their health, property, business etc by the nominated agent once / if the specific event takes places. If, in case, the specified event does not take place, the springing POA does not come into force.
- Medical POA... Medical Power of Attorney is a document of immense value as it states how the wishes of the principal needs to be carried out if he / she suffers from incapacitating conditions. Here, the entirety of health care decisions rests with the appointed agent and ceases when the principal is no more.