FAQ about the Types of Power of Attorney The phrase “power of attorney” is used with great frequency in the field of estate planning. So much so, in fact, that many people who earn their living by planning the estates of others often forget that this is a term of art, and its meaning may not be as clear as they believe. What Is A Power Of Attorney? A plain, run of the mill power of attorney creates an agency relationship between the principal and the agent. The principal is the party granting the power, and the agent is the party in whom the power is vested. In this situation the agent is called an attorney-in-fact and is given written authorization to act on behalf of the principal, but this does not mean that he or she is a lawyer. This power only lasts until the principal is incapacitated or the power is revoked. Are There Different Types Of Power Of Attorney? There are a number of different types of power of attorney. The durable power of attorney allows the grant of power to survive the incapacitation of the principal, thus making it fit for use in estate planning. The financial power of attorney allows the agent to make decisions involving all the financial matters of the incapacitated principal; as such, the decision about who should be given this power is of great importance. Similarly, the health care power of attorney allows the agent to make health care decisions for the principal, once he or she becomes unable to do so. To learn more, contact your estate planning attorney today. Experienced estate planning attorneys Grand Forks ND of the Raymond J. German, LTD. offers estate planning and business planning resources to residents of Grand Forks ND. To learn more about these free resources, please visit www.raygerman.com/ today.
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