Power of attorney is a term people often hear but may not understand. Essentially, in a power of attorney arrangement, one person empowers another to act in their stead under specific circumstances.
It is often helpful to consult an experienced Lombard power of attorney lawyer for advice. Knowledgeable trusts and estates lawyer could explain your options and help craft or revise a plan to suit your needs.
Although powers of attorney may be devised to cover a wide range of situations, most often they are used to give someone power to make healthcare decisions or take financial action if the person creating them becomes unable to do so. Often people in Lombard think to establish powers of attorney when they anticipate a potential medical crisis or event. As a practical matter, however, it may be wise for everyone to have a plan prepared in case of unforeseen emergencies.
For example, an individual might grant a relative or friend power of attorney to make medical decisions on his or her behalf if he or she should ever end up in a persistent vegetative state. Other times, it is necessary to give another the power to make financial decisions when suffering from an illness or disability. Sometimes power of attorney may be granted just to enable someone to complete a single transaction on behalf of another person.
There are three primary types of power that may be granted under power of attorney. They are:
Springing power of attorney holds power in reserve and does not grant it until circumstances arise as described in the document creating the plan. Frequently, springing power of attorney is intended to take effect when the person granting the power is considered incapacitated. However, this circumstance may be difficult to ascertain, so it is wise to be specific in establishing a springing power of attorney.
A durable power of attorney is one that lasts indefinitely, although the principal granting the authority usually retains the power to revoke it. In most cases, durable power of attorney is used to allow the designated person to handle affairs in a certain area of the principal’s life, such as in financial matters.
Finally, a limited power of attorney allows the holder to act on behalf of the principal in one single transaction such as a sale. For instance, a limited power of attorney may be used to enable a real estate agent to handle a closing on behalf of a buyer or seller who is far away.
The powers conveyed through a power of attorney may be broad or narrow depending on the phrasing of the document establishing the power. However, regardless of the specific circumstances, it is wise to pay careful attention and thoroughly understand what a document will and will not allow the designated person to do on your behalf.
When you work with a skilled Lombard power of attorney lawyer, your legal advocate could explain the ramifications and advise you of the right powers to fit your needs. For more information about how custom powers of attorney could benefit your situation, call for a consultation.