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.
Powers of Attorney in the United States are subject to the laws of individual states, so the document changes to conform to your particular state s laws. There is no overall federal law concerning Powers of Attorney, but there is a model Uniform Power of Attorney Act which many states have adopted, fully or partially.
This document can be used if someone is looking to appoint an agent to make financial decisions for them right now, or if someone would like to set up a document that is ready to go in case of incapacity. In this document, the principal or their representative will be able to enter pertinent identifying details about the parties. The person filling out the document will also be asked a series of questions to define exactly what types of authority the principal wants to give the agent.
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.