What is the Difference Between a POA and a Durable POA?

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What is the Difference Between a POA and a Durable POA?

Are you buying a house in a different country? Are you facing a long-term medical fight and want to prepare for all eventualities? You need a Power of Attorney to make sure everything goes well.

A Power of Attorney (POA) is a critical legal tool. It is a document allowing one person to grant another authority to act on their behalf. The person giving authority is the principal. An “agent” or “attorney-in-fact" exercises that authority. A POA empowers the agent to handle financial, legal, or healthcare matters. Not all POAs are equal. There’s a big difference between a standard Power of Attorney and a Durable Power of Attorney. You must understand the differences between the two.

A POA is a vital legal document. It gives a trusted individual the power to make decisions for the principal. The scope of this power depends on the type of POA. There are 4 types of POA with each serving a distinct purpose.

A General POA gives your agent authority over financial and legal matters. They can manage bank accounts and sign contracts on your behalf. They can also handle real estate transactions. Limited or Special POA is only needed for an agent for a specific task. For example, you need someone to manage business transactions while you’re traveling.

Do you want your medical decisions followed? A medical POA allows your agent to make healthcare decisions for you. The document becomes effective under specific conditions. For example, the principal becomes incapacitated while recovering from surgery.

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