Power of Attorney: Choosing the Right Type
Picking the wrong POA can leave family unable to act when it matters most. Here's how to choose.
A power of attorney (POA) authorizes one person (the agent) to act for another (the principal). The four common types differ on scope and trigger.
Key terms
- General POA
- Broad authority over finances; terminates on incapacity unless durable.
- Durable POA
- Survives the principal's incapacity — the most common estate-planning POA.
- Springing POA
- Takes effect only on a triggering event (typically incapacity, certified by physicians).
- Limited POA
- Narrow authority — e.g., sign one real-estate closing while principal is abroad.
Frequently Asked Questions
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