The document also automatically terminates when:
- The Principal dies.
- The Principal becomes incapacitated (if non-durable).
- The Agent dies or is declared legally incompetent and there is no successor named.
If you do decide to void a Power of Attorney, you should notify any banks, businesses, or other institutions that might be affected.
Yes, there are four types of POA forms.
- General: A general Power of Attorney form allows your representative to manage all of your property-based and financial affairs. This type of POA grants them general authority.
-Specific/Limited: A specific Power of Attorney form limits your representative s responsibilities to certain types of decisions. You can choose to allow someone to only make decisions in relation to business, for example.
- Ordinary: An ordinary Power of Attorney is only valid while you, the principal, are capable of making decisions. This type of POA becomes invalid in the event that you become incapacitated.
- Durable: An enduring Power of Attorney is when the contract continues even if you, the principal, become incapacitated.
In addition, if you ever become incapacitated, without this document, even if you have a spouse, the court may need to step in and appoint a guardian or conservator for you. The process of appointing a guardian is costly and requires the guardian to formally report your situation to the court each year. CNN Money estimates that the process of obtaining a court appointed guardian exceeds $1,000. If this is the situation you find yourself in now, please read our guide about getting guardianship over your elderly parent here.
A Power of Attorney is different than an Advance Healthcare Directive because an Advance Healthcare Directive only allows another individual to make healthcare decisions on a principal s behalf. It talks about specific circumstances under which a principal would like someone else to be their agent for health and allows a principal to define the types of authority they would like the agent to have. A Power of Attorney is similar, but is used only for financial decisions.
durable power of attorney
limited power of attorney