One of the documents that you should have in your estate plan is a power of attorney. An experienced estate planning attorney will be able to explain them to you. Of course, if you know the basic types, then you will be better able to determine how qualified an attorney is to draw up your documents. There are several different kinds of powers of attorney. They include:

General Power of Attorney: This means that you’re naming someone to act in your place in the event that you cannot act for yourself. They’re called an agent.

Limited Power of Attorney: This just means that you’ve limited the amount of power your agent has over your affairs. For example, you’re only giving your agent access to your bank account, or to only pay your bills, etc.

One example of a limited power of attorney is the Springing Power of Attorney which only becomes effective if you become incapacitated. These are no longer being recommended because of the HIPAA law (Health Insurance Portability and Accountability Act) which concludes that your medical records stay private unless written consent is given. If your agent can’t get your medical records to prove that you’re incapacitated, then he can’t act as your agent under the Springing Power of Attorney.

Whether you have a general or a limited power of attorney, make sure there is a clause giving your agent the authority to access your medical records in order to prove your incapacitation, should the need come up.

Another item you need to include is a Durable Power of Attorney. This just means that there is language built into your power of attorney stating that it is still viable even upon your incapacitation. Even if you have a general or a limited power of attorney, always make sure that it is durable. Most powers of attorney become null and void upon incapacitation or death. The durable power of attorney makes sure that it is still valid upon incapacitation.

Although power of attorney is essentially handing control of your affairs over to another person, there are different uses of the position which vary depending on the situation. These largely depend on the reason behind power of attorney being transferred from the ‘principal’, the individual who wishes to relinquish control of their affairs, and the ‘attorney-at-fact’, the person who takes control of the principal’s business and legal dealings.

Springing Power of Attorney
Springing power of attorney is used in cases where the principal cannot actively give permission, either verbally or in writing, for someone to act as their attorney-at-fact. To obtain springing power of attorney, a doctor must certify that the principal is incapable of thinking for themselves and an attorney-in-fact is required. Springing power of attorney is used predominantly in cases of sudden deterioration of health, such as deterioration of a mental illness or a serious accident.

Special or Limited Power of Attorney
Predominantly used with non-durable power of attorney, special or limited power of attorney is used for specific cases. It often just applies to financial dealings or a specific property sale, and though an attorney-in-fact is appointed, they have no control over any aspect of the principal’s life apart from the sector they are charged with.

Any other type of power of attorney is called General Attorney, which applies to all affairs and dealings of the principal.

Health Care Power of Attorney
This is a specific power of attorney that is used for those who are terminally or mentally ill, and gives the attorney-in-fact power over medical decisions but nothing more. It is similar to special attorney, though is specifically used for medicinal purposes.