A Special or Limited POA gives an Agent the power to act on your behalf, but only specific powers. You can create several Special POAs, with different agents granted different powers. Here is a list of some of the specific powers you can grant to your Agent:.
- Sign checks.
- Withdraw money.
- Make a gift.
- Create, amend, revoke, or terminate an inter vivos trust.
- Create or change rights of survivorship.
- Create or change a beneficiary designation.
- Authorize another person to exercise authority granted by the power of attorney.
- Waive the principal’s right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan.
- Exercise fiduciary powers that the principal has authority to delegate.
A Medical Power of Attorney allows you to name your health agent, someone who will make health decisions for you if you cannot. Your health care agent will also ensure that your health care providers give you the care you wish to receive. You can also require that your health care agent communicate in any manner with you about any specific proposed health care. For example, you may still be able to communicate by blinking your eyes. Many states, however, combine a Living Will and Power of Attorney into one advance directive form.
To choose an attorney-in-fact, you must consider your options carefully. Aside from your personal preferences, there are also legal requirements for who you select. Your attorney-in-fact may not: Be under the age of majority in your state. Currently be in a state of bankruptcy. Be the owner or employee of a care home where the principal resides or receives treatment.
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.