There is a lot more to estate planning than you may realize. Some people believe all they need to do in order to prepare their estate is create a will. While a will is an incredibly important aspect of an estate plan, it is only one part of a complete and thorough plan. There are many other documents you may want to consider adding to your estate plan, one of the most important being a power of attorney. Read on for more information regarding the different types of powers of attorney in New Jersey.
What is a Power of Attorney?
A power of attorney is a legal document that will allow family members or other individuals to act on behalf of an incapacitated person. This can include making important decisions including finances and healthcare, among other things. There are different types of powers of attorney for different circumstances.
What are the different types of powers of attorney?
There are several types of powers of attorney that you may choose from, depending on your unique situation. Some of those powers of attorney are as follows:
- Durable powers of attorney: These take effect as soon as the individual becomes incapacitated. There is no predetermined end date to the responsibilities. They also grant the agent total control over any affairs specified in the document.
- Non-durable powers of attorney: These are generally active for a specified, predetermined period of time and they are mainly used for “special transactions.” When the transaction ends, the power of attorney also ends.
- Springing powers of attorney: These can be either durable or non-durable, and they begin as soon as a triggering event occurs.
- Special powers of attorney: Special powers of attorney only apply to a very specific aspect of someone’s life. For example, if you co-own a business, you can grant your business partner the power to make certain business-related decisions on your behalf, should you ever become incapacitated.
- Medical powers of attorney: These are perhaps the most important powers of attorney someone can draft, as they give the individual’s loved one the authority to make certain key medical decisions on their behalf, should they no longer be able to do so on their own.
If you are interested in creating a power of attorney, contact our firm today to discuss the best option for you.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.