A power of attorney allows a person to appoint an agent to act on his or her behalf. Some examples of the duties commonly given to an agent in a power of attorney are the ability to conduct: real estate transactions, banking transactions, business operations, tax matters, insurance transactions, estate transactions, etc. Three popular types of powers of attorney are general powers of attorney, durable powers of attorney, and springing durable powers of attorney. A general power of attorney usually becomes effective immediately when signed, but will become ineffective upon the mental incapacity of the person granting the power. A durable power of attorney generally remains effective if the person giving the power becomes mentally incapacitated. A springing, durable power of attorney generally becomes effective if the person granting the power becomes mentally incapacitated.
Powers of attorney can be general or specific, limited or almost limitless. A power of attorney is an important part of an estate plan. Contact Phillips and McCrea today to learn what type of power of attorney is best for you.