A Power Of Attorney… How Can It Help My Family?

Powers of Attorney … 

How Are They Different? And How Can They Help My Family? 

A comprehensive estate plan will go beyond the transfer of assets after you die. It will also include preparations for the eventualities of aging. Many people become unable to handle their own affairs when they reach an advanced age. This could even occur sooner than expected following a serious accident or illness.  And we’ve all read about how COVID-19 has left many in a hospital bed mentally incapacitated.  What can you do now to help your family if any of these potential circumstances arise?

A legal document that is used to name a representative to act on your behalf in the above circumstances is a Power of Attorney (“POA”). But there are various kinds of Powers of Attorney.  Which one is best for your circumstances?

Let’s review the various types of POAs that can be drafted to help you and your loved ones in the event of your future incapacity. 

Limited Power of Attorney 

A Limited Power of Attorney can be drafted to meet your family’s needs. 

A Limited Power of Attorney grants the representative that you choose (the agent or attorney-in-fact) the power to act on your behalf but only under certain, limited circumstances. You decide the nature of these limited circumstances when you create the Limited Power of Attorney. 

General Power of Attorney 

There is also a power of attorney called a General Power of Attorney. The agent is not limited when you execute this type of Power of Attorney. Under a General Power of Attorney, the agent or attorney-in-fact can do anything that you can do. 

This can sound like too much power, and this is why it is possible to create a Limited Power of Attorney instead. However, under many circumstances, a General Power of Attorney is necessary because the person granting it needs a comprehensive level of assistance. At The Mendez Law Firm, your East Orlando Estate Planning law firm, we can review a Limited Power of Attorney and a General Power of Attorney with you to help you decide which one is best for your needs. Call for a FREE Estate Planning consultation (407)380-7724. 

Durable Power of Attorney & Incapacity Planning 

If you were to become incapacitated and unable to make sound decisions, the execution of a Power of Attorney could be a helpful solution. You name an agent to handle your affairs in the event of your incapacity. 

However, if you want to be prepared for this potentiality, you must execute what is called a “Durable” Power of Attorney.  A Durable Power of Attorney will stay in effect even if you become incapacited. On the other hand, a general Power of Attorney that is not durable would cease being effective  if the person creating the document became mentally incapacitated. 

A Durable Power of Attorney is frequently used in estate planning in the event of future incapacity. 

You can tailor the use of a Power of Attorney further for different types of decisions that may become necessary if you were to become incapacitated. For instance, you may need someone to make financial decisions for you if you became incapacitated.  You may likely even need a person to make healthcare and medical decisions on your behalf if you were to become incapacitated. You may even want a particular person to make financial decisions on your behalf, and a different person altogether to handle your healthcare decision-making. 

You can deal with these preferences by creating two different Powers of Attorney; one for health care matters, and one for financial matters. At The Mendez Law Firm, we frequently take this approach with our clients.

At The Mendez Law Firm, we can review your family’s needs with you and help you come up with an Estate Plan that works best for your family! And we will review with you whether a Limited Power of Attorney,  a General Power of Attorney., or a Durable Power of Attorney is best under your circumstances.  We can review in detail as well how a Financial Power of Attorney and a Healthcare Power of Attorney would work for you and your family.   Near you, we’re your East Orlando Estate Planning law firm that specializes in protecting you, your family, and your business! 

Your East Orlando Estate Planning attorney can review your estate assets with you and how Powers of Attorney can help you and your family. Call The Mendez Law Firm at (407)380-7724. The Estate Planning consultation is FREE, and there is NO obligation. 

Conveniently located in the East Orlando area. Call The Mendez Law Firm TODAY at (407)380-7724 to schedule your FREE Estate Plan consultation. Copyright © 2020. The Mendez Law Firm, L.L.C. All rights reserved.