Depending on whether it is a person with declining health, a condition such as Alzheimer’s or dementia, or just the one requiring expert help with the sale or purchase of a property, principals will need to choose the proper power of attorney form. Below are some of the most common types.
General Power of Attorney
A general power of attorney is used to grant the chosen attorney-in-fact control of the principal’s financial affairs. This could include handling specific business issues or particular financial operations, depending on the parameters set. With a general POA, if the principal loses their life or is disabled, the POA loses its validity and is therefore terminated.
Durable Power of Attorney
Using this type of POA form, the principal can allocate an attorney-in-fact to act on their behalf for a particular set of circumstances or situations. While this is very similar to a general POA, a durable POA will remain valid if the principal falls ill or becomes disabled.
Medical Power of Attorney
This type of POA is most often used when the principal is terminally ill or works in a high-risk job where their life is frequently at stake. This POA is used to help make decisions about any medical-related issues, including treatments and medications.
Minor Child Power of Attorney
Any time a legal parent or guardian is forced to leave the country for an extended period, they can pass over guardianship with a minor child POA. Using this form, the guardian can legally act as the child’s parent to make medical and educational decisions.
Tax Power of Attorney
Principals can use the tax power of attorney (Form GEN-58) to grant a selected individual the right to handle preparations or submit any tax-related forms, including personal or business-related taxes. This person could be a trusted accountant or even the preparer responsible for handling and filing the taxes for the principal or company-owned by the principal.