The phrase “power of attorney” is used with terrific frequency in the field of estate planning.
Much so, in fact, that many individuals who make their living by planning the estates of others frequently forget that this is a term of art, and its significance might not be as clear as they believe.
What Is a Power of Attorney?
A plain, run of the mill power of attorney creates a firm relationship between the principal and the agent. The principal is the party granting the power, and the agent is the celebration in whom the power is vested. In this situation the agent is called an attorney-in-fact and is provided written authorization to act on behalf of the principal, but this does not indicate that he or she is a lawyer. This power just lasts up until the principal is crippled or the power is revoked.
Are There Different Kinds of Power of Attorney?
There are a number of various kinds of power of attorney. The resilient power of attorney enables the grant of power to endure the incapacitation of the principal, thus making it suitable for use in estate planning. The monetary power of attorney allows the representative to make decisions involving all the financial matters of the incapacitated principal; as such, the choice about who needs to be provided this power is of terrific importance. Similarly, the healthcare power of attorney allows the agent to make healthcare choices for the principal, once she or he ends up being unable to do so.
To learn more, contact your estate planning lawyer today.