Here are some key terms and definitions related to power of attorney:

Power of Attorney is a legal document that allows an individual (the principal) to designate another person (the agent or attorney-in-fact) to act on their behalf in financial, legal, or health care matters. This powerful legal tool grants the agent the authority to make decisions and take actions as if they were the principal.

Durable Power of Attorney is a type of Power of Attorney that remains in effect even if the principal becomes incapacitated or unable to make decisions for themselves. This is in contrast to a non-durable Power of Attorney, which becomes invalid if the principal loses mental capacity. A Durable Power of Attorney can be especially useful for long-term planning and ensuring continuity of decision-making.

Financial Power of Attorney, also known as a General Power of Attorney, grants the agent authority to manage the principal’s financial affairs. This may include tasks such as paying bills, managing investments, filing taxes, and conducting banking transactions. The scope of powers can be broad or limited, depending on the principal’s wishes and needs.

Advance Directive is a legal document that outlines a person’s wishes for end-of-life care and medical treatment in the event they become incapacitated and unable to communicate their preferences. There are several types of advance directives, including:

– Living Will: This document specifies the types of medical treatments and life-sustaining measures a person does or does not want to receive if they become terminally ill or permanently unconscious. It may address issues such as artificial nutrition, hydration, and pain management.

– Healthcare Power of Attorney: Also known as a medical power of attorney, this document designates a trusted individual to make healthcare decisions on behalf of the principal if they become incapacitated. The healthcare agent is responsible for ensuring the principal’s wishes are carried out and making decisions in their best interest.

Springing Power of Attorney is a Power of Attorney that only becomes effective under specific circumstances, typically when the principal becomes incapacitated. This type of Power of Attorney “springs” into action when predetermined conditions are met, as opposed to being immediately effective upon signing.

Limited Power of Attorney restricts the agent’s authority to specific tasks or transactions. For example, it might grant the agent power to sell a particular piece of property or manage a specific investment account. This type of POA is often used for one-time or short-term needs.

Principal is the person who creates the power of attorney and grants authority to the agent. The principal must be mentally competent at the time the Power of Attorney is created for it to be legally valid.

Agent, also known as the attorney-in-fact, is the person appointed by the principal to act on their behalf. The agent has a fiduciary duty to act in the best interests of the principal and within the scope of authority granted by the Power of Attorney.

Fiduciary Duty refers to the legal and ethical obligation of the agent to act in the best interests of the principal. This includes duties of loyalty, care, and good faith. The agent must avoid conflicts of interest and make decisions that align with the principal’s wishes and welfare.