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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Frequently Asked Questions
What’s the difference between a General Power of Attorney and a Durable Power of Attorney?
A General Power of Attorney allows your chosen person to act on your behalf while you’re still competent and able to make decisions – it’s often used for convenience when you can’t handle matters personally. A Durable Power of Attorney only becomes effective when a doctor determines you’re incompetent or unable to communicate, and it continues even after you become incapacitated.
Can the same person serve as both my financial power of attorney and healthcare power of attorney?
Yes, you can appoint the same person for both roles, but you don’t have to. Some people prefer to have different individuals handle financial versus medical decisions based on each person’s strengths, availability, or expertise. Consider who would be best suited for each type of decision-making responsibility.
Can I revoke or change my power of attorney documents after they’re signed?
Yes, as long as you’re mentally competent, you can revoke or modify your power of attorney documents at any time. You should notify your attorney-in-fact in writing and provide copies of any revocation to relevant institutions like banks or healthcare providers. It’s important to destroy old documents to avoid confusion.
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