What is a POA and Why Do I Need One?
A power of attorney is a document that allows someone else to make financial or medical decisions on your behalf; a POA is an important part of your estate plan because it enables you to provide for your care if you become seriously ill.
A power of attorney is a legally binding document that allows another person to sign on your behalf. If you are the one granting this authority to someone else, you are called the principal. The person to whom you give permission to sign on your behalf is called the agent. Some documents refer to the agent as the “attorney-in-fact,” but this term is somewhat misleading because the agent does not have to be a lawyer. In fact, most powers of attorney are signed between family members. You can draft a power of attorney so that the agent only has the authority to make one specific financial transaction on your behalf, or you can give the agent virtually unlimited control over your finances, or anywhere in between. A durable power of attorney is a very important document, and a St. Petersburg durable power of attorney lawyer can help you get started.
Different Types of Powers of Attorney
These are some of the most common types of power of attorney that people sign:
- Limited power of attorney – This gives the agent the authority to make a specific transaction or set of transactions within a set period. For example, you give your mother the authority to sell your car while you are working in another city for several months.
- Financial power of attorney – The principal gives the agent free rein to make financial transactions on the principal’s behalf for a set period.
- Durable power of attorney – You give the agent control over your finances, and this power continues even if you become seriously ill.
Contact Kruse Law About Drafting a Power of Attorney
A St. Petersburg estate planning lawyer can help you draft a power of attorney and all the other estate planning documents you need. Contact Kruse Law Group in St. Petersburg, Florida, to set up a consultation.