Designating general, durable, or health care power of attorney can be an important step in your estate plan.
General Power of Attorney
A General Power of Attorney (GPOA) is a document which allows you (the principal) to appoint a trusted person, as your Attorney-In-Fact, giving them the authority to act on your behalf under certain circumstances. The true purpose behind a power of attorney is that an individual, while competent, may designate another person to make business decisions, pay bills, transfer assets, etc.
Durable Power of Attorney
A Durable Power of Attorney (DPOA) generally differs from a General Power of Attorney in that it generally becomes effective when a physician or psychologist determines that the Principal is incompetent or unable to make or communicate.
This is a powerful tool that should be given great consideration prior to enacting.
Health Care Power of Attorney
A health care power of attorney (HCPOA) is a document in which the principal, while competent, appoints a Heath Care Agent or heath care attorney-in-fact to make health care decisions for the principal, should the principal be unable to do so.
Unlike a General Power of Attorney, a HCPOA only becomes effective when a physician or psychologist determines that the Principal is incompetent or unable to make or communicate health care decisions. Further, a HCPOA remains in effect until the principal dies or regains competency or his/her ability to make and communicate health care decisions.
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