A power of attorney refers to your written approval for someone else to act on your behalf in business, legal or private affairs. Many people overlook the benefits of a power of attorney because they assume that the primary aspect of estate planning is to handle things after you pass away. However, this could be a major mistake as incapacity or disability can happen at any point during your life and not having someone to step in and manage your affairs can create further confusion and problems.
There are three primary types of power of attorney, including:
• Durable power of attorney, which allows another individual the authority to manage financial transactions on your behalf. This allows you to appoint someone else to manage all of your financial affairs if necessary.
• A healthcare power of attorney that enables you to allow someone else to oversee your medical care and make healthcare decisions on your behalf if you are unable to do so.
• A springing power of attorney. Much like a durable power of attorney, this allows you to appoint someone else to handle your financial affairs and this can only happen when there has been a triggering event such as your incapacitation.
To learn more about various powers of attorney, reach out to the offices of an experienced New Jersey estate planning attorney today.