The Management Of Your Affairs Through Powers of Attorney

In estate planning, the Power of Attorney is a very important legal tool which authorizes one person to act as a legal representative that will be responsible for making financial and health decisions including binding legal on your behalf.

Though the internet offers all kinds of forms for creating power of attorney, there are very little resources on how to completely explain what it is for, when do you actually need one, and which type should you choose. Though we may have the idea that the power of attorney is used to grant certain power and authority to a third party to act on your behalf, it is also very important to seek help from professionals on how to actually make one. Furthermore, careful consideration is also needed when choosing for the right person to whom you will be granting that authority and power and that limits should be imposed as to where should that person should act on your behalf.

Basically, there are two main types of powers of attorney. When we say, general power of attorney, we mean that we are imposing the third party an unlimited access to our financial matters. There are no limitations on the scope and duration with regards to authority and thus permits the named representative to legally act on your behalf without reservations until such time that the power of attorney is revoked.

On the contrary, the specific powers of attorney impose a certain degree of limitations from which the named representative can practice his/her authority over your affairs. The document is capable of restricting the named representative to exercise his/her power to a single or several specific transactions.

Both general and specific powers of attorney may have limited duration when it comes to representation on your behalf. The document can specify the exact date on which the power of attorney will be revoked thus will no longer be valid.

One of the most important reasons for having a power of attorney ready at all times is when you get incapacitated. This reason has always been left ignored by many people who are not keen in the making of their estate planning documents. A healthcare power of attorney is usually used to call this special document. It allows you to name a legal representative to act on your behalf should you become unable to articulate your wishes or unable to make a sound medical decision for yourself. The legal representative will have the power to make the best medical decisions that’s right for you.

The powers of attorney along with other basic planning documents are extremely important estate planning tools and mistakes are not an option. That’s why the professional lawyers of the Austin Estate Planners are here to help you all the way before things gets too late. The Austin Estate Planners shall be ready for an in-depth consultation anytime you feel ready for planning your future.