![]() ![]() You can also choose an agent who has the power to make both medical and financial decisions on your behalf. This individual requires a medical power of attorney. Second, a person wants to specify a loved one who can make healthcare decisions if they become incapacitated. ![]() Therefore, they enact a financial power of attorney. First, someone may seek a POA to ensure their finances and business interests are looked after if they are unavailable or unable to make timely decisions. Generally, people sign a power of attorney for two primary reasons. Understanding the Financial and Medical POA Likewise, if you want your POA to be enforceable even if you are medically unable to make vital decisions, you will sign a medical power of attorney. If you only want the POA to be in force if you become incapacitated, you should consider a springing power of attorney. This means that the agent can begin acting on the principal's behalf immediately. Most power of attorney agreements become effective as soon as they are signed. The scope of powers conveyed to the agent under a POA can range from the ability to pay bills to having the agent choose where the principal resides. Once enforceable, a POA grants the attorney-in-fact, also commonly known as the agent, rights to act on the principal's behalf. However, deciding which power of attorney is right for your situation can be difficult.Ī power of attorney is a legal document between two parties: the principal and the attorney-in-fact. As part of comprehensive estate planning, naming a power of attorney can help ensure your affairs are in order. To best prepare yourself for the future, you should understand the differences between a financial and medical power of attorney (POA).
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