As you age, you should consider drafting a power of attorney. This document designates a person—called an agent—to make decisions on your behalf regarding your health care, finances, and other important facets of your life. When you draft this document, you need to know not only who your agent will be but also what type of power of attorney you want to create. There are three types, each lasting for a different amount of time. Here’s a look at what sets each one apart from the others.
What Is Limited Power of Attorney?
If you want to set up a power of attorney that is only valid for a specific event or matter, you should choose a limited power of attorney. This document assigns an agent to make decisions on your behalf, but it’s limited to a single event or issue. Once it has been handled, the power of attorney disappears.
For example, if you are buying a house in a different state than Minnesota, you can grant a limited agent power of attorney to sign documents, so you don’t have to spend time and money traveling. Similarly, if you need someone to manage a bank account while you are out of the country for a year, you can grant someone limited power of attorney. They can manage your account on your behalf until you return home when the agreement ends.
What Is Durable Power of Attorney?
If you want someone to have power of attorney over more than one event and for a longer time, you can grant someone durable power of attorney. This arrangement can go into effect immediately and does not automatically expire after a specific event like a limited power of attorney does.
So, if you’re not sure how long you will need your agent’s help, you can set up this power of attorney and continue it until you no longer need it. You can choose to revoke it at any time or allow it to continue even after you become incapacitated.
What Is Springing Power of Attorney?
A springing power of attorney does not take effect until a specified event happens. For instance, you can sign a power of attorney document that only becomes valid once you are considered mentally incapacitated. If that occurs, the agreement springs into effect, and your agent can make decisions on your behalf.
In most cases, if you want to sign a durable power of attorney that you don’t want to take effect immediately, you will create a springing power of attorney. Once you meet the condition for the agreement to spring into effect, it will become a durable power of attorney that lasts until you revoke it.
If you are unsure which power of attorney you want, call our law firm at 612-448-9653 to discuss your options with our caring, skilled attorneys.