A power of attorney is a very important estate planning tool, but in fact there are several different kinds of powers of attorney that can be used for different purposes. Before executing this crucial document, it is important to understand what your options are.
A power of attorney allows a person you appoint — your “attorney-in-fact” or agent — to act in your place for financial or other purposes when and if you ever become incapacitated or if you can’t act on your own behalf. There are four main types of powers of attorney.
Types of Power of Attorney Documents:
• Limited Power of Attorney
• General Power of Attorney
• Durable Power of Attorney
• Springing Power of Attorney
Regardless of what type of power of attorney you use, it is important to think carefully about who your attorney-in-fact will be. Your attorney-in-fact will have a lot of control over your finances, and it is crucial that you trust him or her completely. At Itamar Levy & Associates, PLLC we will explain and help navigate you through this process.