A Power of Attorney (POA) is a legal document that lets you grant another person the authority to make specified decisions on your behalf. There are many types of POAs. Some of the most common are:
- Durable power of attorney – durable power of attorney allows the agent to immediately and indefinitely act on your behalf by making financial and/or health related decisions for you, unless revoked or terminated.
- Non-durable power of attorney allows the agent to act on your behalf by making financial and/or health related decisions for you unless you become incapacitated or die, at which point only a court appointed guardian or conservator can make these decisions for you.
- Medical power of attorney – also known as an advance directive - allows the agent to make health care decisions for you when you have been declared mentally incapacitated by the physician.
- General power of attorney - allows the agent to perform a broad range of financial, business, and legal actions/decisions for you but ends if you become incapacitated (unless it’s durable) or die. State statutes may restrict the powers granted under a general power of attorney.
- Limited (special) power of attorney - allows the agent to perform a specific task or act for a limited period or under certain conditions on your behalf. This type of power of attorney expires once the specific task has been completed.
- Springing power of attorney - allows the agent to act on your behalf only if a certain event or condition occurs, such as incapacity.
A Trustee is a person or company appointed in a trust document to manage and disburse trust property. If you establish a trust, you can name an individual to be the trustee, or you can name a corporate trustee. A corporate trustee is a trust company or bank trust department that you name to manage your assets and take on the role co-trustee, investment agent, and successor trustee during different phases of the life of your trust. Click here to learn the benefits of a trust, as well as here to learn the benefits of choosing a corporate trustee.