If you want to assign someone (an agent) to manage your personal and business responsibilities when you are away or incapacitated, assigning a Power of Attorney (POA) can make that happen for you. Legally creating a Power of Attorney document is simple and enforceable when signed by witnesses and notarised.
General Power of Attorney. In this situation, the agent can perform almost any act as the principal, such as opening financial accounts and managing personal finances. A general power of attorney arrangement is terminated when the principal becomes incapacitated, revokes the power of attorney or passes away.
Durable Power of Attorney. This arrangement designates another person to act on the principal’s behalf and includes a durable clause that maintains the power of attorney after the principal becomes incapacitated.
Special or Limited Power of Attorney. In this instance, the agent has specific powers limited to a certain area. An example is a power of attorney that grants the agent authority to sell a home or other piece of real estate.
Springing Durable Power of Attorney. In some states, a “springing” power of attorney is available and becomes effective when a specified event occurs such as when the principal becomes incapacitated.
Other types of Power of Attorneys: Military Power of Attorney, Mental Health Care Power of Attorney, Medical Power of Attorney
Provided that you already know who you want your agent to be, it only takes a few minutes to make the Power of Attorney document that you'll need to print and take to be notarized alongside your witnesses. While not every state requires notarization, you may as well go ahead and take that step just in case it is challenged.
It should be noted that most Power of Attorney documents these days are meant to be "durable," meaning that they continue to be active if you become incapacitated.
