CFP

By Investopedia AAA

Documentation - Powers of Attorney

Powers of Attorney
A Power of Attorney is a written document which one person (principal) uses to empower another person (attorney-in-fact) to act on his or her behalf. There are three basic types of powers of attorney, each serving a unique purpose:

  • General power of attorney – A general power of attorney authorizes someone to act on your behalf in different circumstances when you are unable to handle them.
  • Limited power of attorney A limited power of attorney, sometimes called a "special" power of attorney, authorizes someone to act on your behalf only in specific situations. For example, you may authorize someone to sell a specific item for you, such as a car.
  • Medical power of attorney A healthcare power of attorney allows you to appoint someone to make healthcare decisions for you. This is different from a living will, which only allows you to express your wishes concerning life-sustaining procedures.

All of these types of powers of attorney can be made durable. A durable power of attorney allows the attorney-in-fact to exercise the powers you give them even after you have become incapacitated. The death of the principal terminates a power of attorney whether or not it is durable. Another alternative is to create a "springing power of attorney." This power only goes into effect when you become disabled.

Trusts

You May Also Like

Related Articles
  1. Several things factor into the salary of a financial advisor. Here's a look.
    Investing Basics

    How Much Does A Financial Advisor Earn?

  2. With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Here are the top 5 forex risks to avoid.
    Economics

    Top 5 Forex Risks Traders Should Consider

  3. ISAs are financial instruments that allow students to raise funds to pay for their degrees by selling shares in their future earnings.
    Investing Basics

    Funding Higher Education With An ISA

  4. Top Ways to protect your purchases from credit card hackers or security breaches.
    Credit & Loans

    7 Ways To Protect Against Credit Card ...

  5. The Internal Revenue Service's new 2015 contribution limits for tax-deferred savings plans are higher; here's what you and your clients should know.
    Investing Basics

    New 2015 Contribution Limits: Advisors ...

Trading Center