“A power of attorney should be considered when planning for long-term care. There are different types of POAs that fall under either a general power of attorney or limited power of attorney.

A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state. The agent under a general POA agreement may be authorized to take care of issues such as handling bank accounts, signing checks, selling property and assets like stocks, filing taxes, etc.

A limited power of attorney gives the agent the power to act on behalf of the principal in specific matters or events. For example, the limited POA may explicitly state that the agent is only allowed to manage the principal’s retirement accounts. A limited POA may also be limited to a specific period of time (e.g., if the principal will be out of the country for, say, two years).

Most powers of attorney documents allow an agent to represent the principal in all  property and financial matters as long as the principal’s mental state of mind is good. If a situation occurs where the principal becomes incapable of making decisions for him or herself, the POA agreement would automatically end. However, someone who wants the POA to remain in effect after the person’s health deteriorates would need to sign a durable power of attorney (DPOA)”

Source: Investopedia

N.B: The  concept of Power of Attorney applies to an individuals Health too.

Published on :Posted on

Post your comment

Your email address will not be published. Required fields are marked *