What Are the Different Types of Power of Attorney?

Create a Power of Attorney What Are the Different Types of Power of Attorney?

What Are the Different Types of Power of Attorney?

Before delegating some of your decision-making rights to a third party, you need to understand what types of power of attorney exist and what each of them entails.

Let DoNotPay help you create the most suitable power of attorney document for your specific needs. We have the relevant info, and our AI-powered app can generate the document for you in no time.

Different Types of Power of Attorney for Different Purposes

A power of attorney (POA) gives one or more persons the power to act on your behalf as your attorney-in-fact or agent. The power you give can:

  • Provide temporary or permanent authority
  • Be general or limited to a specific activity, e.g., the sale of your property, and revoked at any time—most U.S. states require a written notice of revocation
  • Take effect immediately after the document is signed or upon the occurrence of a particular event, e.g., when confirmed you cannot act for yourself because you are physically or mentally incapacitated

Granting decision-making rights to another person is tricky, and you need to understand what type of POA works for you.

What Are the Four Types of Power of Attorney?

Take a look at the following table showing different types of power of attorney you can opt for:

Types of POAInformation
General POA
  • Becomes effective upon signing
  • Stays in effect until you become mentally incapacitated or decide to terminate it (it's voluntary)
  • Needs to include what authority you are passing on your agent
  • Covers a wide range of powers, e.g., you can give a person the power to access and handle your financial accounts
Durable POA
  • Starts with the signing of the document
  • Remains in force for a lifetime unless you revoke it
  • Needs to specify that the agent’s power stays in effect in case you are physically or mentally incapacitated
Springing POA
  • Begins with a specific (triggering) event, e.g., when you become incapacitated
  • Has to precisely specify the triggering event to avoid any confusion and legal problems
Limited POADefines specific powers you give to an agent, e.g., an agent can have the power to:

  • Buy and sell assets or carry out an investment strategy on your behalf
  • Sign the deed of sale for your property in your absence

A Durable Power of Attorney vs. Power of Attorney

While a durable power of attorney stays in effect even when you become incapacitated, a general or conventional POA does not.

A durable POA grants control of specific property, legal, or financial matters and can be:

  1. A power of attorney for finances or financial power of attorney giving an agent the power to manage your financial and business affairs
  2. A medical power of attorney—also called a medical proxy or healthcare power of attorney—allowing an agent to make decisions regarding your health care, usually in the case of debilitating medical conditions

All institutions will ask your agent to present a POA before complying with their decisions.

Financial and medical POAs can be drafted as one document, but it might be wiser to separate them. Financial institutions don’t need your medical data, and medical professionals don’t have to be familiar with your financial status.

A springing power of attorney defines the conditions when a durable POA comes into effect, including the:

  1. Level of incapacitation
  2. Type of triggering event

How To Prepare the Power of Attorney

You can create a power of attorney in the following ways:

  1. Download a power of attorney letter template—Although online templates can be helpful, they are usually too general and require numerous changes. Make sure the template you find is in accordance with your state laws
  2. Hire a lawyer—While this might be the wisest decision, it is also the most expensive one. You should inquire about the fees to understand if you can afford this pricey service
  3. Subscribe to DoNotPay—Our AI-powered app can help you prepare a POA customized to your specific needs

DoNotPay Helps You Create the Most Appropriate Type of Power of Attorney

Why pay a hefty sum to a lawyer or use a template you must alter entirely? Our app helps you create a custom-made power of attorney in a few easy steps!

DoNotPay will ask a few questions regarding the powers you want to give to your agent(s). We'll use the info to generate the best document, so you and your agent can sign it immediately.

Open DoNotPay and:

  1. Select the Power of Attorney feature
  2. Answer our chatbot’s questions to specify what powers you want to include in your POA

Once you finish, DoNotPay will automatically generate your POA. You will also get two important notices that you and your agent should read before signing the document.

As many states require a power of attorney to get notarized, you can complete this activity in our app, too!

No need to look for notaries public, schedule an appointment, drive to their office, or risk your health meeting them face to face. DoNotPay will connect you with a power of attorney notary, and the process will be handled remotely.

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