Types of Powers of Attorney

A POA is a legal document where you pick people, your “agents” to make financial and legal decisions for you.

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There are different types of POA documents. 

• Some are in effect immediately others only go into effect later if you are ill or injured.

• Some give broad powers some only give limited and specific powers.

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The type of POA document we offer is in effect immediately.

• That means your agent can call and get the balance of your checking account and transfer money on your behalf immediately.

• The reason we generally recommend a POA be enforceable immediately is so that action can be taken quickly to protect you. If your agent first has to get a doctor to sign something saying you are severely injured/incapacitated, your agent could miss the opportunity to act quickly to protect assets (examples: exercising stock options or pension options, forcing an insurance company to act, taking time-sensitive legal action).

• Also, many financial institutions will not honor a “springing” power of attorney, or one that is limited in any way. 

 

The type of POA document we offer gives broad powers.

• The reason we generally recommend this type of POA, is because we don’t know what type of help you will need. As long as you completely trust your agent, you probably want them to be able to do anything they think is necessary on your behalf.