As part of an estate plan, you can create two types of powers of attorney – specific or limited and general / durable power of attorney. Both documents authorize others to handle matters named in the document under certain circumstances. However, you need to ensure that you have the correct power of attorney for certain circumstances.
Specific or Limited Power of Attorney
Specific or limited powers of attorney are usually used for one-time transactions. For example, if you are closing on a home and cannot attend the closing, you can give your attorney or a trusted person general power of attorney to handle the transaction, including signing the closing documents on your behalf. In this case, the specific or limited power of attorney is only good for the real estate closing.
General Durable Power of Attorney
When you need to plan for someone to handle your finances or make medical decisions during medical emergencies or periods of incapacity, you need a general durable power of attorney. This document stays in place should something happen to you – it allows the person or persons you name to act on your behalf. A “durable” power of attorney remains in effect if you become incapacitated for any reason.
You can have more than one durable power of attorney. In fact, most people have at least two – one for finances, a financial power of attorney, and one for health care, an advance directive or healthcare power of attorney.
You can name one person to handle your finances with a durable financial power of attorney. Or, if you need one person to handle your everyday affairs, such as bank accounts and paying bills, but another person to handle business transactions, you can have two durable financial powers of attorney.
As for healthcare, you can also have one person make all healthcare decisions or name two or more people to make those decisions. However, naming more than one person may muddy the waters and could cause fighting between the agents if they cannot work together to make the best decisions for you.
Contact Our Georgia Estate Planning Attorneys
If you do not have an estate plan or need to modify an estate plan, contact our Georgia estate planning attorneys at Grissom Law, LLC in Johns Creek, Georgia for a consultation.
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