Estate Planning and the Types of Power of Attorney There are many different types of power of attorney; in fact, there are so many that someone could be easily overwhelmed when trying to decipher just what, exactly, is encompassed by a grant of power of attorney. And don’t worry: if you don’t know what a power of attorney is, you are not alone. To put it simply, the phrase “power of attorney” describes one person’s bestowal of power upon another person to act in their stead. The person who bestows the power is called the principal, while the person receiving the power is called the agent. This nomenclature is used because this legal device, although predominantly used in estate planning these days, originates from the field of agency law. Within the field of estate planning, the most frequently encountered types of power of attorney are those related to money and healthcare. The former is called a financial power of attorney, and the latter is called, rather self-evidently, a health care power of attorney. The financial power of attorney allows the agent to make decisions regarding the principal’s financial well-being. This includes investment portfolios, real property, and virtually anything having a financial aspect to it, so the person upon whom this power is bestowed should be chosen wisely. A health care power of attorney grants the agent the ability to make healthcare decisions for the principal in the event that he or she becomes incompetent or incapacitated, thus unable to make their own decisions. Again, the decision as to whom this power should be bestowed should be made wisely. Contact your estate planning attorney with any questions you may have about power of attorney. Experienced estate planning attorneys Port St. Lucie FL of the Robert J. Kulas, P.A. offers estate planning and business planning resources to residents of Port St. Lucie FL. To learn more about these free resources, please visit www.kulaslaw.com/ today.
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