A power of attorney (POA) is a legal document that grants one person (the agent or attorney-in-fact) the authority to act on behalf of another person (the principal) in legal or financial matters. The scope and duration of the authority given can vary widely depending on the type of POA and the specific terms outlined in the document.

Here are the main types of power of attorney:

  1. General Power of Attorney: Grants the agent broad powers to handle the principal’s affairs, including financial and business transactions, buying life insurance, settling claims, operating business interests, making gifts, and employing professional help. This type of POA usually ends when the principal becomes incapacitated or dies.
  2. Limited or Special Power of Attorney: Grants the agent authority to act on the principal’s behalf in specific situations or for specific tasks. This could be for managing a particular property, handling a specific financial transaction, or other narrowly defined tasks. The authority ends when the task is completed or at a specified time.
  3. Durable Power of Attorney: Remains in effect even if the principal becomes incapacitated. This type of POA can be general or limited but includes a durability provision that keeps the POA in effect after the principal is no longer able to make decisions for themselves.
  4. Springing Power of Attorney: Becomes effective only if a certain event occurs, typically the incapacitation of the principal. This type of POA “springs” into effect under the conditions specified in the document.
  5. Medical or Healthcare Power of Attorney: Grants the agent authority to make healthcare decisions for the principal if they are unable to do so. This can include decisions about medical treatments, healthcare providers, and end-of-life care.

The power of attorney is a crucial legal tool for estate planning, elder care, and ensuring that one’s affairs are managed according to their wishes in case they become unable to do so themselves. It is important to choose a trusted person as an agent and to clearly define their powers and limitations in the POA document.