When creating an estate plan in Louisiana, it is important to understand what a power of attorney is and the different types that you can choose from. Here are some useful information about these documents and how they play a very important role in your estate planning.
What is a power of attorney?
A power of attorney is a document inside an estate plan in which you pick someone to be an agent that will make certain decisions for you if you are unable to make them for yourself. There are a few different types of POAs including medical, general, springing and special POA.
Types of power of attorneys
A medical power of attorney appoints an agent to make your health care decisions if you can’t make them for yourself. This includes any medical treatment, organ donation, surgery procedures, whether to release your medical records and other things that pertain to your health.
A person designated under a general power of attorney will have control of many aspects of your life. Not only can they make financial decisions, they can also make business decisions, legal decisions and decisions regarding your real estate. This could include things such as paying your bills, entering contracts, selling your real estate or buying new real estate properties and overlooking your bank transactions.
A person appointed under a limited power of attorney will only have the ability to do specific actions that you specify. For example, they may only be able to handle things regarding your business, or they will only be allowed to pay your bills on your behalf.
A springing power of attorney is someone that you designate to handle certain aspects of your life if a specific event or medical condition arises that you previously specified in the document. An example would be if a soldier gets deployed in another country.
You must be very careful when choosing an attorney-in-fact. They will have control of different aspects of your life, so you must select someone who is responsible and trustworthy.