The phrase “power of attorney” is used with fantastic frequency in the field of estate planning.
So much so, in truth, that many individuals who earn their living by planning the estates of others frequently forget that this is a term of art, and its significance may not be as clear as they believe.
What Is a Power of Attorney?
A plain, run of the mill power of attorney develops a company relationship between the principal and the representative. The principal is the celebration granting the power, and the representative is the party in whom the power is vested. In this circumstance the agent is called an attorney-in-fact and is given written authorization to act upon behalf of the principal, however this does not mean that she or he is a legal representative. This power just lasts until the principal is immobilized or the power is revoked.
Are There Different Types of Power of Attorney?
There are a number of different types of power of attorney. The long lasting power of attorney allows the grant of power to survive the incapacitation of the principal, hence making it suitable for use in estate planning. The financial power of attorney enables the representative to make decisions involving all the financial matters of the incapacitated principal; as such, the decision about who must be offered this power is of fantastic value. Likewise, the health care power of attorney permits the agent to make healthcare choices for the principal, as soon as she or he ends up being unable to do so.
To find out more, contact your estate planning attorney today.