One of the most essential documents you should have in your estate plan is a Power of Attorney. Do a little research on POAs and you’ll find there’s more than one type: General, Resilient and Springing. So which one do you need?
A General Power of Attorney is normally used when you need somebody to deal with legal affairs in your place for a short duration of time. This might be because you’re heading out of town for example, or perhaps you want a lawyer to negotiate a contract on your behalf. The General POA will grant that authority within the restrictions you define.
A Long lasting Power of Attorney works the exact same way but unlike a General POA, it is not instantly withdrawed when you become mentally incapacitated.
This type of POA is a helpful tool for partners or partners who wish to make sure that someone they trust constantly has access to financial accounts and the ability to pay costs, speak to financial institutions and handle other typical financial affairs.
The Springing Power of Attorney works simply like the first 2 but only enters into play when you’ve been identified as mentally incapacitated. This is typically the POA of option for people who wish to make sure that their estate is safeguarded if they become handicapped.
As long as you are mentally sound, the POA stays non-active, however if something should take place and you are no longer able to manage your own affairs, the Springing POA would “spring” into action.
So which one is ideal for you?
That of course will depend upon your private requirements. To learn more about POAs and how to use them in your estate plan, seek advice from a competent estate planning attorney.