Estate Planning : Power of Attorney
There are different types of powers of attorney, such as a special power of attorney, which is limited to specific acts or types of acts or a general power of attorney, which is more broad in scope. Durable power of attorneys are commonly used for health care directives. They are a basic set of instructions to direct care when a principal is unable to make decisions due to incapacity. Power of attorneys may also be used to direct the management and control of a principal’s financial matters, including collecting income and paying bills.
In contrast to a power of attorney, a living will which is a written statement of a persons health care and medical wishes, does not appoint another person to make decisions.
Most powers of attorney are revocable at any time, unless the principal is incapacitated. If there are problems with agents who fail to act appropriately, they may be resolved by a probate judge. Since conservatorships trump an agent’s authority under a power of attorney, some probate judges avoid further problems by appointing conservators to handle a principal’s affairs.
Frequent Questions for Estate Planning:
- What’s the first step in estate planning?
- Do I need an attorney?
- What are some important points to remember about estate planning?