The power of attorney is a very necessary document with the help of which the principal can transfer the authority of taking actions on behalf of the principal to any other individual. The individual can be any professional attorney, family member, agent, or any attorney in fact. The authority which the principal granted is not the same in all types of power of attorneys. Now, let’s talk about the types of attorneys. As mentioned down below, there are four recorded and registered types of poas but some people count them as five including the medical and healthcare POA. The medical and Healthcare is a special POA which lies under the limited power of attorney. So, let’s move onto them.
General Power of Attorney:
So, at first, we will talk about the general Poa. The general power of attorney is a legal document that provides the attorney in fact all the powers and authorities that the principal has. It means, as long as the document is signed, the agent can perform and act anything which is required on the behalf of the principal. The agent can purchase & sell, trade stocks, withdraw funds, make medical decisions, and anything that the agent wants. The principal is liable for all the losses and liabilities made by the agent. So, one has to be careful while choosing someone as the general power of attorney because after the principal has assigned the agent, no one can do anything till the principal revokes it. The general POA does not need an attorney in practice, it can be one of the principal’s family members if the principal wants.
Limited Power of Attorney or Special Power of Attorney:
The limited poa and the special poa, these both are the different names for the same term. The limited/special poa is a legal document that gives someone else the power to take action on your behalf for a limited/special purpose. For example, if the principal is out of the town and assigned an agent to submit the money to the bank on a specified day then it is a limited poa. Now, the agent only has the power to submit money to the bank on a particular day. The special poa ends at the time mention in the document.
Durable power of attorney:
The durable poa can be both the general poa and the limited poa by nature. In this, the agent can act only after the principal becomes disabled. The durable poa remains into action until the death of the principal. The principal can revoke the poa when he/she is not disabled and no one can present the principal if no durable poa is made.
Springing Power of Attorney:
The springing poa is as like the durable poa. The minor difference between them both is of the standard of determining the disability is mentioned clearly in the contract itself by the principal.
Healthcare or Medical Power of Attorney :
The medical power of attorney is a document in which the principal assigns an attorney in fact to manage all medical and healthcare-related activities. The agent has the complete authority to make medical and healthcare decisions when the principal is disabled or incapacitated.