A power of attorney (POA) is a legal document that allows you (the “principal”) to appoint someone else (your “agent” or “attorney-in-fact”) to make decisions on your behalf. This can be a crucial part of estate planning, especially when preparing for potential incapacitation. Without one, healthcare, family, business, and financial decisions may be delayed or made by someone you wouldn’t choose.
There are several types of POAs, but the two most common are durable and general. The key difference between a durable vs. general power of attorney lies in when they are effective and when they terminate.
Because a POA is a legal document with potentially significant consequences, it’s always a good idea to consult with an attorney when creating one.