Powers of attorney (POAs) are frequently considered essential parts of estate planning, and seniors often use them so that someone is in place to make medical and/or financial decisions on their behalf if they’re no longer able to do so.
However, there is more than one kind of power of attorney. Two commonly discussed options include the springing and durable types.
What’s the difference?
Essentially, a durable power of attorney becomes effective as soon as it is signed – and it remains in effect even if you become incapacitated. Conversely, a springing power of attorney only goes into effect under specific circumstances. Typically, that’s when you become incapacitated – not before.
Why does it matter?
Both of these have their advantages and drawbacks. The advantage of a durable power of attorney is that you don’t have to worry about how “incapacity” will be established. A springing power of attorney can be problematic because doctors can be loath to declare someone incapacitated. Privacy issues can also make them reluctant to share your medical information with your presumptive POA – even if they have the document in hand. That can lead to delays in your agent’s ability to take action.
However, the disadvantage of a durable power of attorney, of course, is that you are giving someone tremendous authority over your life. In your absence, someone with your financial POA could potentially divert funds from your bank account, sell your home out from under you or take other unwanted action over your life. That means there has to be a significant level of trust between you and your chosen agent.
Ultimately, deciding what manner of POA you want to have is a deeply personal decision – but talking it over with legal guidance can help you get clear.
