What are the Different Types of Power of Attorney?

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A power of attorney is a legal document that entitles a person to act on behalf of another person. The person on whose behalf the power of attorney is created is called the principal or grantor. The agreement becomes legally binding when the document is duly signed by all the relevant parties in front of a notary.

Power of attorney is important for a number of reasons, and understanding the different types of power of attorney is important to ensure that you make the right decisions regarding the estate planning. Here we will explain five important types of power of attorney.

General Power of Attorney

A general power of attorney allows the agent to perform all personal affairs of the principal. The agent can make decisions regarding medical, financial, and business decisions. Illinois law requires the agent to keep a record of and report all types of actions on behalf of the principal.

Special Power of Attorney

Unlike a general power of attorney, a special power of attorney grants limited powers to perform specific tasks. An example includes empowering a person to purchase or sell a real estate on behalf of the principal. The scope of the agent is defined in the power of attorney document within which the agent operates.

Springing Power of Attorney

In case the power of attorney becomes effective only when a certain event is triggered, it is known as springing power of attorney. It is so called because it ‘springs’ into effect when certain events are triggered.
The triggering event can be anything such as when the principal is out of town, becomes incapacitated, or at a certain date. This type of power of attorney allows the principal mentioned in the document to retain control of the affairs until the specified event is triggered.

Durable Power of Attorney

A durable power of attorney once executed cannot be revoked by a person other than the principal. Only the principal agent has the power to revoke the durable power of attorney. A durable power of attorney expires upon the death of the principal.

Non-durable Power of Attorney

A power of attorney can be non-durable if the power automatically expires after a certain period. Alternatively, it can expire once a certain event is completed. The principle need not revoke it or die for it to expire.

Contact a Chicago Lawyer Regarding “Power of Attorney”

When making decisions regarding power of attorney, it’s important that you contact a capable attorney. An experienced lawyer will help you in making the right decisions regarding your estate. If you reside in Chicago, or have family in Illinois and have questions about setting up a power of attorney, contact us today to know more about your options to secure your future.

By | September 15th, 2017|Estate Planning, Probate|