7 Types of Power of Attorney Explained

Regardless of your age, financial status, or family makeup, power of attorney should be an essential component of your estate plan. Power of attorney allows one person (the principal) to delegate authority to another person (the attorney in fact) to make decisions on their behalf, including after the principal has become incapacitated. However, there are several different types of power of attorney, and not all types are ideal for all people. If you’re considering incorporating power of attorney into your estate plan, our Springfield power of attorney counsel can help you choose the one that will work best for you. 

General vs. Limited Power of Attorney

Power of attorney may be either general or limited. In the broadest sense, a general power of attorney with no limitations grants the attorney in fact the authority to do “each and every action or power which an adult who is nondisabled and nonincapacitated may carry out…with respect to any and all matters whatsoever” (see RSMo § 404.710). A limited power of attorney, on the other hand, grants the attorney in fact only specific powers. For example, a principal might use a limited power of attorney to grant the attorney in fact the authority to manage a specific piece of property or handle a specific type of transaction. 

Medical vs. Financial Power of Attorney

If you’re planning for long-term care, you’ll want to consider how both your medical matters and financial matters will be handled. Luckily, power of attorney is flexible enough to encompass both matters. A medical power of attorney (also known as a “living will”) authorizes the attorney in fact to make medical decisions on your behalf, including decisions related to medical treatments, medications, surgery, and end-of-life care. Financial power of attorney authorizes the attorney in fact to make decisions about your money and property, including collecting and managing retirement benefits, making bank deposits and withdrawals, and selling and leasing real estate. 

Durable v. Non-Durable Power of Attorney 

The key issue with durable vs. non-durable powers of attorney is incapacity. Simply put, a durable power of attorney continues in force after the principal becomes incapacitated, while a non-durable power of attorney does not. It is called a “durable” power of attorney because it withstands the principal’s incapacity. To make a power of attorney durable, the document must be denominated as a “Durable Power of Attorney” or include certain language specifying that the authority granted in it will not terminate if the principal becomes incapacitated. 

What About “Springing” Power of Attorney? 

Absent provisions to the contrary, power of attorney becomes effective when it is executed. A “springing” power of attorney, by contrast, becomes effective only upon the occurrence of a future event, such as the incapacitation of the principal. It is called a springing power of attorney because it “springs” into action when the triggering event occurs. 

Still Not Sure? Our Springfield Power of Attorney Counsel Can Help 

For more information about choosing a power of attorney that will work for you, please contact our Springfield power of attorney counsel at LifeGen Law Group by calling 417-823-9898 or using our online contact form.