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Heritage Tree LogoPowers of Attorney – Do They Have Unlimited Control?

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A Power of Attorney (POA) is a document that allows an individual to choose a loved one to act on his or her behalf when it comes to important health and legal matters. This may be necessary in the event of incapacitation. Read on to learn more about powers of attorney, how much control they give, and the different options you have.

Different Types of Powers of Attorney in Pennsylvania

If you are considering creating a power of attorney, you may be wondering how much power you are really giving to your chosen attorney-in-fact. The answer is: it’s up to you! There are different types of powers of attorney, with different levels of power. You can choose the one that works best for your unique situation. The following POAs are available in Pennsylvania:

  • General power of attorney: When someone creates a general power of attorney, they will designate an agent to act on their behalf for certain financial transactions, such as banking matters. These powers of attorney may give the principal the right to create or terminate contracts, however, an agent can still act on behalf of the principal when it comes to certain investments.
  • Durable power of attorney for healthcare: This is an extremely important power of attorney to create, as doing so will give a trusted loved one the right to make certain critical medical and healthcare decisions on your behalf, should you be unconscious, incapacitated, or otherwise unable to make those decisions on your own.
  • Durable power of attorney: A durable power of attorney gives the agent you appoint the legal authority to open bank accounts, sign checks, or even run your business. However, you should note that once the principal becomes incapacitated, the power of attorney will be terminated.
  • Limited power of attorney: A limited power of attorney designates an agent for a certain situation, such as a party being unavailable or otherwise unable to conduct business matters, such as a real estate transaction, on their own.
  • Springing power of attorney: These give the principal the legal right to designate an agent for a predetermined moment in time, or springing action. Once this event occurs, the power of attorney will take effect.

If you have any questions or concerns about creating a power of attorney, or any other aspects of the estate planning process, contact our experienced firm today.

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