Understanding Power of Attorney

 A General Power of Attorney gives broad powers to an agent (the person you appoint) to act on your behalf. These powers include handling financial and business transactions, purchasing life insurance, settling claims, and operating business interests. However, the GPOA usually ends if the principal (the person granting the POA) becomes incapacitated or dies. 

 A Durable Power of Attorney remains in effect even if the principal becomes incapacitated or mentally incompetent. This type of POA is commonly used in estate planning to ensure that a trusted individual can manage affairs if the principal is no longer able to do so. 

 A Springing Power of Attorney becomes effective only when a specific event occurs, usually the incapacitation of the principal. This type of POA is contingent on a trigger event, like a doctor’s certification of the principal’s mental incapacity. 

 A Medical Power of Attorney allows the agent to make healthcare decisions for the principal in the event they are unable to do so. The agent can decide on treatments, procedures, and even end-of-life care if outlined. This is often used in conjunction with an advance healthcare directive. 

 A Financial Power of Attorney is a more specific type of POA that allows the agent to handle financial decisions on behalf of the principal. This includes paying bills, managing bank accounts, investing money, and filing taxes. It can be durable or non-durable, depending on the principal’s needs.