Protecting yourself and your loved ones requires thoughtful planning and the help of legal professionals who can navigate the law to handle your financial, medical, or legal matters. But what kind of legal power do you need for each situation? Understanding the difference between a durable power of attorney vs. general power of attorney can ensure your wishes are honored and your family’s future is protected. In this article, we compare these roles and clarify when each is most beneficial for your circumstances.
What Is a Power of Attorney?
A power of attorney (POA) is a legal document that allows you to designate a responsible and trusted individual, known as an agent or attorney-in-fact, to act on your behalf in specific matters. Depending on the type of POA you choose, your agent may handle financial transactions, manage legal affairs, or make healthcare decisions if you become incapacitated.
What Is General Power of Attorney?
A general power of attorney grants your chosen agent authority to act on your behalf in various matters, including:
- Managing bank accounts
- Paying bills and taxes
- Handling business transactions
- Buying or selling property
When to Use a General Power of Attorney
A general power of attorney can be helpful in certain situations:
- When you are traveling short-term or plan on an extended absence
- If you have business transactions that require representation when you are unavailable
- When you have a temporary health setback or medical procedure and need financial assistance for a short time
What Is Durable Power of Attorney?
On the other hand, a durable power of attorney remains in effect through many life stages, even if you become incapacitated. This feature makes it a valuable tool for long-term planning and ensuring that your affairs are handled responsibly during illness or injury and in the event of cognitive decline.
A durable power of attorney can oversee a range of areas, including:
- Financial management
- Healthcare decisions
- Legal matters
Unlike a general power of attorney, a durable POA includes specific language that ensures its authority continues even if you can no longer make your own decisions.
When to Use a Durable Power of Attorney
A durable power of attorney is ideal for situations including:
- Planning for future aging or incapacity
- Ensuring continuity of financial management
- Designating someone to make healthcare or end-of-life decisions on your behalf
Durable Power of Attorney Vs. General Power of Attorney: Key Differences
| Feature | General Power of Attorney | Durable Power of Attorney |
| Validity Period | Until incapacity | Continues after incapacity |
| Scope | Financial and legal matters | Financial, legal, and healthcare |
| Purpose | Temporary/specific situations | Long-term planning |
| Common Uses | Travel, business, short-term needs | Aging, long-term health management |
Choosing the Right Power of Attorney for Your Needs
Deciding between a durable power of attorney vs. a general power of attorney depends on your current and future needs, which are unique and require a solution tailored to you. If you need someone to manage your affairs temporarily, a general POA may suffice. However, if you want to ensure continuous management of your financial plan and other affairs in case of future incapacity, a durable POA is a more secure long-term option.
It is necessary to consider factors like your health, age, and the complexity of your finances when making this decision. Consulting with an experienced attorney can provide valuable insight into which option aligns best with your current needs and future goals.
How to Set Up a POA
Creating a power of attorney involves several steps to ensure it meets legal requirements and serves your intended purposes. These steps include:
- Choose a trusted agent. Select someone who is reliable and understands your wishes.
- Determine the scope. Decide whether a general or durable POA suits your needs.
- Draft the document. Work with an attorney to ensure the POA is legally valid.
- Sign and notarize. Ensure the document is properly signed and notarized for legal recognition.
- Inform key individuals. Share copies with your agent and relevant institutions.
Trust Auld Brothers Law Group for Your POA Needs
Auld Brothers Law Group understands the complexities involved in planning for your future. Our experienced team in Pittsburgh provides guidance and reassurance as you navigate crucial legal decisions and plan for your future. We take a compassionate approach, carrying your burden for you and ensuring you feel confident in your choices and prepared for your future. We can help you compare a durable power of attorney vs. a general power of attorney so you can make an informed decision.
Contact us today to learn more about setting up a power of attorney that suits your needs and provides you peace of mind.