What is a power of attorney and do I need one?

On Behalf of | Oct 11, 2023 | Estate Planning, Power Of Attorney |

In today’s complex world, it is crucial to plan for unforeseen circumstances that may affect our ability to make decisions regarding our finances, healthcare and personal affairs. One effective way to prepare for such situations is by establishing a power of attorney (POA).

What is a power of attorney (POA)?

A power of attorney is a legally binding document that gives authority to a person or entity to act on behalf of another person. There are different types of powers of attorney depending on the needs of the person creating it.

General power of attorney

A general power of attorney gives authority to a person or entity over all financial matters and legal decisions on behalf of the person who created the power of attorney. If the creator of this type of power of attorney becomes incapacitated, the power of attorney is void.

Durable power of attorney

Durable powers of attorney remain valid even if the creator becomes mentally or physically incapacitated. A person would create this type of power of attorney to have someone make decisions for them in case they get sick and cannot manage their own affairs.

Limited or special power of attorney

A limited or special power of attorney gives specific permissions to the person with the authority to act on behalf of the creator. The specific permissions, tasks or actions are defined in the document. For example, if a person is traveling to another country, they may want to create a limited power of attorney and designate someone to have permission to act on their behalf while they are traveling.

Healthcare power of attorney

A healthcare or medical power of attorney designates a person to make medical decisions on behalf of the creator of the power of attorney when they are unable to do so themselves due to incapacitation.

Powers of attorney in Arizona

Arizona has specific laws governing powers of attorney under The Uniform Power of Attorney Act (UPOAA), which outlines requirements and provisions to make sure powers of attorney are enforceable and legal.

Establishing a power of attorney in Arizona is an important step toward safeguarding your interests and ensuring that your wishes are honored when you are unable to make decisions yourself.