So, you’ve been told you need a medical power of attorney. Maybe by your doctor, maybe by a friend who just got theirs done, or maybe you’re just thinking ahead. Smart move.

A medical power of attorney (or healthcare POA) lets someone you trust make medical decisions for you if you’re ever unable to do it yourself.

It’s one of those documents you hope you never need… but, it’s a lifesaver if you do.

Now let’s get to the big question: How much does it cost to get one in Virginia?

It doesn’t have to cost much at all! You’ve got options, from totally free to more premium services. And depending on your situation, one route might make more sense than another.

In this post, we’ll break down how much a medical power of attorney costs, and give you a quick rundown of our estate planning prices.

How Much Does A Medical POA Cost?

The cost of a medical power of attorney in Virginia can range from $0 – $500 depending on how you get it done. Here’s what each option looks like.

Option	Estimated Cost
DIY (free templates)	Free
DIY with notarization	$10 – $50
Attorney-drafted document	$150 – $500
Full estate planning package	$1,800 – $4,750
Legal aid (if eligible)	Free

Let’s take a look at each of these in more detail next.

Also Read: Does A Power Of Attorney Have To Be Recorded In Virginia?

DIY Options

If you’re the type who doesn’t mind filling out some paperwork and following clear instructions, then the do-it-yourself route might be perfect for you.

And bonus – it’s usually free or close to it.

You can find legit Virginia-specific medical POA forms online. Some are from law websites, others from the Virginia State Bar. These are the real deal and legally recognized in the state. You just fill in your details, sign, and you’re good to go.

Some people also choose to get it notarized for extra peace of mind. That’s not required in every case, but it doesn’t hurt. Notary fees usually run around $10 to $50.

So if you’re comfortable doing things on your own and your situation is pretty straightforward, this is an easy, low-cost way to handle it.

Legal Aid (If Eligible)

Now, if you’re low-income, elderly, or dealing with certain disabilities, there’s a good chance you qualify for free help through legal aid in Virginia.

There are organizations across the state that assist people with civil legal matters, including healthcare documents like this one.

They’ll walk you through everything and make sure it’s done right. It might take a little time to schedule with them, but the service is typically excellent. And again it’s free.

It’s worth checking if you qualify, especially if money is tight but you still want something solid and legally sound.

Attorney Services

For people who want everything done by a pro, hiring an attorney is the best option.

If your medical situation is complex or if you just want the confidence of having a lawyer look everything over, this route gives you that.

An attorney-drafted medical POA usually runs between $150 and $500 in Virginia.

That depends on the firm, how detailed your needs are, and how much customization the document needs. Most lawyers will meet with you for a short consultation, ask some questions about your healthcare wishes, and draft the document for you to review and sign.

It’s not the cheapest route, but you’re paying for expertise and attention to detail. Plus, if laws change or you need updates later, it’s nice to already have someone who knows your file.

Also Read: How Much Does A Will Cost In Virginia?

Full Estate Planning Package

If you’re already thinking about writing a will, setting up a trust, or getting other legal documents in place, you might as well ask about bundling everything into a full estate plan.

At a minimum, that usually include:

• Medical POA
• Financial POA
• Advance directive
• A will

This is more of an investment. In Virginia, full estate planning packages can run anywhere from $1,800 to $4,750, depending on how complex your situation is.

But it covers everything in one go and can be a smart move if you’ve got dependents, property, or just want all your legal ducks in a row.

It’s definitely the most expensive option, but also the most comprehensive.

Our Power Of Attorney Prices

We offer a full estate planning package that includes your Medical Power of Attorney, along with Medical Directives and a Will.

Our pricing usually starts around $1,500, and we keep our rates on the lower end because we believe this kind of planning should be accessible to everyone.

If you’re looking to get your medical and legal wishes clearly documented, reach out – we’ll walk you through the process and give you straightforward pricing based on your needs.

Also Check Out Our: Richmond Medical Directive Services

Factors That Affect The Cost Of Healthcare POA

If you’re trying to get a ballpark idea before committing, here are some things that can bump the cost of creating a medical power of attorney up or down:

#1 How You Create It

This one’s the biggest factor, hands down.

If you’re comfortable using a template or downloading a form from a reputable site, you can get it done for free or just the cost of printing. Add in maybe $10–$50 if you want to get it notarized (which is a good idea for peace of mind, even if it’s not always legally required).

But if you hire an attorney to draft it for you, that’s when you’ll start seeing a few hundred dollars on the bill.

#2 Attorney Experience And Reputation

Medical power of attorney costs also depend on the lawyer you choose.

Someone fresh out of law school might offer a more budget-friendly rate. But if you go to a seasoned estate planning attorney or a firm that handles high-value estates, you’re going to pay more for their time – and their expertise.

If you’ve got complex wishes, multiple people involved, or concerns about your healthcare choices being followed to the letter, hiring someone with experience is well worth the cost.

#3 Whether It’s Part Of A Larger Estate Plan

Getting a medical power of attorney as a standalone document is pretty affordable on its own.

But if you’re already setting up a will, trust, or financial power of attorney, most attorneys will recommend bundling it all together into a full estate plan.

That ups the total cost, sometimes by a few thousand dollars.

But you also get a bunch of legal tasks handled all at once. It saves you time, makes sure everything works together properly, and usually ends up being more cost-effective than paying for each document separately.

Also Read: How Much Does Estate Planning Cost In Virginia?

#4 Urgency

Need your medical POA drafted tomorrow because you’ve got surgery coming up?

That rush might cost you. Some attorneys charge an expedited service fee for same-day or next-day turnaround.

On the flip side, if you’ve got time and flexibility, you can usually avoid that extra cost. Planning ahead gives you more options and a better shot at saving money.

So if this is something on your radar, it’s smart to tackle it now – before you’re in a tight spot.

Bottom Line

Creating a medical power of attorney costs around $10 – $500 in Virginia.

You can do it for free using a state-approved form, or you can invest a few hundred dollars and get it handled by a lawyer. Legal aid is a fantastic option if you qualify, and bundling it into a bigger estate plan might save you money in the long run.

The main thing is to just get it done.

It’s one of those documents that gives you and your loved ones a huge sense of relief. It tells doctors who to listen to if you’re ever unable to speak for yourself.

That’s a big deal, and it’s worth a little time and money now to avoid confusion later.

Losing a loved one is tough. It’s emotional, overwhelming, and on top of all the grieving, there are a million things to take care of – especially when it comes to their finances.

One of the questions that might come up is, “Can someone with power of attorney still cash a check after a person has passed away?”

The short answer is no, a POA cannot cash a check after death.

The power of attorney ends the moment the person passes away.

In this post, we’ll explain why a power of attorney can’t cash a check and answer some FAQs you might have.

What Happens To The Power Of Attorney Upon Death?

When someone passes away, the power of attorney (POA) they granted no longer applies. The authority the agent had to make decisions or handle their affairs ends right there.

In other words, the POA becomes void as soon as the person dies.

The person who had POA can no longer make decisions, sign documents, or manage any financial accounts.

At this point, what you’ll need is a different legal document, such as a probate or letter of administration, to step in and start dealing with the deceased person’s finances. These are what give someone the legal right to take over those responsibilities.

Also Read: Can POA Sign Checks?

Can A Power Of Attorney Cash A Check After Death?

No, a power of attorney can’t cash a check after someone dies. The POA ends as soon as the person passes away, so the agent no longer has the authority to handle their financial matters.

So, if you find a check written out to your loved one after they’re gone, the only way to deposit it or cash it is through the estate process.

The executor or administrator (who takes over managing the deceased person’s affairs) will have to take care of that check as part of settling the estate. This could mean opening an estate bank account to deposit checks and start paying any debts or distributing funds according to the will.

In other words, after death, everything goes through the probate process.

What Happens To The Decedent’s Financial Matters?

After someone passes away, their financial matters are handled by the executor or administrator of their estate. This person is usually named in the will, or if there’s no will, the court appoints someone to handle the estate, and the process gets a little more complicated.

The executor’s job is to take care of the deceased’s financial affairs, which includes:

• Gather all of the deceased’s assets (bank accounts, property, etc.).
• Pay off any outstanding debts or bills.
• Distribute the remaining assets to the beneficiaries.

In some cases, especially if there’s a lot to manage or if there’s a complicated estate, it might take some time to get everything in order.

Also Read: Does a power of attorney have to be recorded?

If someone passes without a will, the court usually has to decide how things should be handled, which can lead to delays.

Exceptions To Consider

It’s important to know that while a POA ends at death, there are a few exceptions when it comes to managing finances.

If you’re acting under a power of attorney and the person who passed away was involved in a joint account with you, you might still have some ability to access the account temporarily.

However, it doesn’t last forever, and things still need to go through probate eventually.

Here are a couple of key exceptions to think about:

Joint Accounts

If the deceased had a joint account with someone else, that joint account holder often has immediate access to the funds, even after death.

This doesn’t mean they have full control of the entire estate—just the joint account part.

Named Beneficiaries

Some financial products, like life insurance or retirement accounts, let people name beneficiaries who will receive the funds directly.

This bypasses the probate process, which can make things a lot easier and faster.

Also Read: Contesting the Probate Process

Bottom Line

A power of attorney cannot cash a check after death.

Once someone passes away, the POA becomes invalid, and all financial matters move into the hands of the executor or administrator of the estate.

So, if you find yourself dealing with your loved one’s finances after their death, it’s essential to understand how probate works and make sure you have the legal authority to handle things.

It can be a lot to juggle, but knowing the right steps will help make the process a little smoother.

FAQs

Can I Use The POA To Pay Funeral Expenses?

No, once someone has died, the POA is no longer valid. If there’s an urgent need to pay for funeral expenses, the family will often have to use personal funds or work with the estate to handle those costs later.

What Happens To Checks Written To A Deceased Person?

Checks written to a deceased person can’t be cashed or deposited into their personal account.

The checks should be deposited into the estate’s account, which is set up by the executor or administrator. From there, the estate’s funds will be managed according to the decedent’s wishes or court instructions.

How Can I Find Out If An Estate Is In Probate?

To find out if an estate is in probate, you can contact the probate court in the county where the deceased lived. Many courts offer online access to probate records, or you can visit in person.

Or the estate’s executor or administrator should have information on whether the estate is in probate.

Are you suddenly in charge of managing someone else’s finances through a Power of Attorney? 

Or maybe you’re planning ahead and want to know what powers you can grant to someone?

One of the big questions that often comes up is whether a Power of Attorney can sign checks. It’s an important detail that can really affect how day-to-day finances are handled.

In this guide, I’ll clear things up and go over everything you need to know about signing checks as a Power of Attorney.

Can A Power of Attorney Sign Checks?

Yes, a power of attorney can sign checks. But, there’s more to it than that.

Usually, this check-signing power comes with what we call a financial power of attorney. It’s a document that lets the agent handle the principal’s financial matters.

But here’s the thing – some POAs might have limits or special instructions.

So, if you’re the principal or the agent, make sure you read that document carefully.

Also Read: Types of Power of Attorney

Apart from that, even when a POA does allow handling checks, some banks might have their own rules about accepting POA documents.

They might want to review the POA and ask for more paperwork before letting an agent sign checks on the principal’s account.

How To Sign Checks As A Power of Attorney

Okay, so you’ve got the power to sign checks. Great! But how do you actually do it? There’s a specific way to sign that keeps everything clear and legal. 

Here’s what you need to do:

1. Write down the principal’s name
2. Add the word “by” or “for”
3. Sign your own name as the agent
4. Add “POA” or “Attorney-in-Fact” at the end

Examples

Let’s look at some examples to make it super clear:

• Sarah Smith, by Jane Watson, POA
• James Crump by Cindy Minton, Power Of Attorney
• Clara Johnson, by Michael Johnson, Attorney-in-Fact
• Robert Brown, by Elizabeth Green, Agent

Steps To Take Before Signing Checks As POA

Before you start signing those checks, there are a few things you should do:

Also Read: Tips for Utilizing Power of Attorney

Give The Bank Your POA Documents

First things first, take a certified copy of the POA document to the bank (if you haven’t already). 

They need to see it to make sure you have the authority to sign checks. Without it, they won’t accept any of the checks you sign.

It’s best to do this as soon as the POA is set up, not when you’re in a rush to write a check.

Check If The Bank Accepts Your POA

Just because you have a POA doesn’t mean every bank will automatically be cool with it. Some banks might have their own rules or forms. 

After you give them the document, make sure they’re okay with it. 

If there are any problems, it’s better to sort them out now rather than later.

Ask The Bank For Their Preferred Signature Format

Remember how we talked about different ways to sign? 

Well, each bank might like it done a certain way. Even though the format we mentioned earlier is pretty common, it’s best to ask the bank directly how they want you to sign

This way, you won’t have any trouble when you actually need to write a check.

Limitations, Restrictions And Legal Considerations

Now, having a POA is a big deal, but it doesn’t mean you can do whatever you want. 

There are rules and limits you need to follow.

As the agent, you always have to act in the best interest of the principal. 

You can only do what the POA document says you can do. If you misuse your power, like writing checks for yourself without permission, you could get into serious trouble.

Also Read: Is Your Will Giving You Trust Issues?

Some POAs have specific restrictions too. Others might be “springing,” which means they only kick in under certain conditions, like if the principal becomes unable to make decisions.

Also, banks have their own rules about POAs.

They might ask you to update or confirm the POA document every so often, especially if it’s been in place for a long time.

Best Practices For POA Agents

If you’re an agent, here are some good habits to get into:

1. Keep records of all the financial transactions, including copies of checks you write.
2. If possible, talk regularly with the principal about financial decisions.
3. Don’t mix the principal’s money with your own.
4. Be open with family members or others involved about what you’re doing with the money.

And if things get complicated, don’t be afraid to ask a lawyer or financial advisor for help.

Bottom Line

A power of attorney can sign bank checks, as long as the POA document says they can. 

But remember, this power comes with a lot of responsibility. You’ve got to follow the rules, do what’s best for the principal, and keep good records of everything you do.

FAQs

How Do I Sign As Power Of Attorney For My Mother

When you’re signing as power of attorney for your mom, you’d write something like this: “Your Mom’s Name, by Your Name, POA” or “Your Mom’s Name, by Your Name, Attorney-in-Fact.” 

But remember, always check with the bank to see how they want you to do it.

Can A Power Of Attorney Write Checks To Themselves?

Yes, a Power of Attorney could write a check to themselves. 

You can prevent this by setting up a dual signatory with the bank, so that every check would need two signatures – your one and the POAs.

Easy Steps for Effective Estate Planning Power of Attorney

Are you ready to take control of your estate planning? We’ve got you covered with easy steps for an effective power of attorney.

With our guidance, you’ll understand the basics, identify key decision-making powers, and select the right agent.

We’ll help you draft a clear and comprehensive document that aligns with your goals. Plus, we’ll show you how to review, update, and enforce your power of attorney for optimal estate planning.

Let’s get started on securing your future.

Key Takeaways

• Power of attorney is crucial in estate planning to ensure wishes are carried out even if the person becomes incapacitated.
• Common mistakes to avoid include not choosing the right agent, not specifying powers granted, and not updating the document regularly.
• Carefully considering the key decision-making powers in power of attorney is crucial to ensure important decisions are made on behalf of the person if they become incapacitated.
• Seeking the guidance of an experienced attorney, drafting a clear and comprehensive power of attorney document, and regularly reviewing and updating it are essential steps in effective estate planning.

Understanding the Basics of Power of Attorney in Estate Planning

When it comes to estate planning, it’s crucial that we understand the basics of power of attorney. Power of attorney is a legal document that grants someone the authority to act on our behalf in financial and legal matters. This document becomes especially important in estate planning because it ensures that our wishes are carried out even if we become incapacitated.

Understanding the importance of power of attorney in estate planning is essential to protect our assets and make sure our affairs are handled according to our wishes. However, there are common mistakes to avoid in power of attorney documents. These mistakes can include not choosing the right agent, not specifying the powers granted, or failing to update the document regularly.

Identifying the Key Decision-Making Powers to Grant in Your Power of Attorney Document

We should carefully consider the key decision-making powers that we want to grant in our power of attorney document. This document is a crucial part of estate planning, as it allows someone we trust to make important decisions on our behalf if we become incapacitated.

Here are three key decision-making powers to consider when granting power of attorney:

1. Financial Management: This includes the authority to manage our finances, pay bills, and handle banking transactions. It’s important to choose someone who’s responsible and has a good understanding of financial matters.
2. Healthcare Decisions: Granting the power to make healthcare decisions ensures that our medical preferences are followed. This includes the authority to make treatment decisions, access medical records, and communicate with healthcare providers.
3. Property and Asset Management: This involves the authority to manage our property and assets, such as buying, selling, or leasing real estate, managing investments, and handling insurance matters.

Selecting the Right Agent for Your Estate Planning Power of Attorney

To ensure the effectiveness of our estate planning power of attorney, it’s crucial to carefully select the right agent.

One of the most important factors to consider when choosing an agent is their ability to communicate effectively with the grantor. Clear and open lines of communication are essential to ensure that the agent understands the grantor’s wishes and can make decisions accordingly.

Additionally, the agent should be trustworthy, reliable, and capable of handling the responsibilities that come with being a power of attorney. It’s important to think about the agent’s availability, willingness to serve, and financial responsibility.

Taking the time to select the right agent can provide peace of mind and confidence that our estate planning power of attorney will be executed effectively.

Drafting a Clear and Comprehensive Power of Attorney Document

First, we frequently need to carefully draft a clear and comprehensive power of attorney document. This is an essential step in estate planning to ensure that our wishes are effectively communicated and legally binding.

Here are three key points to consider:

1. Importance of legal assistance: Seeking the guidance of an experienced attorney is crucial when drafting a power of attorney document. They can provide valuable insights, review the document for any errors or inconsistencies, and ensure that it complies with all relevant laws and regulations.
2. Common mistakes to avoid: There are several common errors that can undermine the effectiveness of a power of attorney document. These include vague language, improper execution, and failing to update the document regularly. It’s important to be aware of these mistakes and take steps to avoid them.
3. Clarity and comprehensiveness: A well-drafted power of attorney document should clearly outline the powers granted to the agent, specify any limitations or restrictions, and address potential scenarios that may arise in the future. It should also include provisions for successor agents and contingency plans in case the primary agent is unable to fulfill their duties.

Ensuring Your Power of Attorney Aligns With Your Estate Planning Goals

The power of attorney document should align with our estate planning goals to ensure that our wishes are accurately represented and carried out. It’s crucial to seek legal assistance when creating a power of attorney as it can be a complex process with potential legal implications. An experienced attorney can guide us through the process, ensuring that our power of attorney document is legally valid and aligns with our estate planning objectives.

When it comes to estate planning power of attorney, there are common mistakes that should be avoided. One of these mistakes is failing to update the document regularly. As our circumstances change, our estate planning goals may evolve, and it’s important to reflect these changes in our power of attorney document.

Additionally, choosing an inappropriate agent or failing to provide clear instructions can lead to unintended consequences. By avoiding these mistakes and seeking legal guidance, we can ensure that our power of attorney aligns with our estate planning goals, providing us with peace of mind and confidence in our future plans.

Reviewing and Updating Your Power of Attorney as Needed

As our circumstances change, it’s essential for us to regularly review and update our power of attorney document to ensure it remains aligned with our evolving estate planning goals. Life is full of unexpected twists and turns, and our power of attorney needs to reflect these changes accurately.

Here are three reasons why updating your power of attorney is of utmost importance:

1. Changes in relationships: Over time, relationships may change, and the person you appointed as your power of attorney may no longer be the best choice. Updating your power of attorney allows you to select someone who’s still trustworthy and capable of handling your affairs.
2. Changes in health: Our health can deteriorate over time, making it necessary to designate a power of attorney who understands our medical wishes and can make decisions on our behalf.
3. Changes in financial situation: Our financial circumstances can change, and it’s crucial to ensure that our power of attorney has the necessary authority to manage our finances effectively.

Implementing and Enforcing Your Power of Attorney for Effective Estate Planning

To effectively implement and enforce our power of attorney for estate planning, we must establish clear guidelines and communicate our wishes to the designated agent.

Implementing power of attorney is a crucial step in the estate planning process, as it ensures that our interests and decisions are protected when we’re no longer able to make them ourselves. By appointing a trusted individual as our agent, we can have peace of mind knowing that someone we trust will make financial, legal, and healthcare decisions on our behalf.

It’s important to discuss our expectations and desires with our agent and provide them with all necessary information to carry out their responsibilities effectively. Regular communication and updates are essential to ensure that our power of attorney remains aligned with our current wishes and circumstances.

We’ve got the inside scoop on how to make the most out of power of attorney in estate planning. In this post, we’ll share five essential tips to help you navigate this important legal process.

From understanding the role of power of attorney to selecting the right agent, we’ve got you covered.

We’ll also guide you through the legal requirements and show you how to maximize the benefits of a special power of attorney.

Key Takeaways

• Effective communication with your power of attorney is crucial to ensure they understand your desires.
• Trustworthiness is an important consideration when choosing an agent.
• Understanding and meeting legal requirements is crucial for a valid and enforceable power of attorney.
• Appointing an inexperienced or untrustworthy agent is a common pitfall to avoid.

Understanding the Role of Power of Attorney in Estate Planning

Now let’s delve into the importance of understanding the role of power of attorney in estate planning.

When it comes to estate planning, appointing a power of attorney is a crucial decision. However, it’s equally important to understand the limitations that come with granting someone this authority.

A power of attorney is a legal document that grants someone the power to make financial and legal decisions on your behalf. It’s essential to comprehend that this authority can be limited to specific areas or made broad, depending on your wishes.

It’s also crucial to establish effective communication with your power of attorney. Regularly discussing your wishes, goals, and concerns with them will ensure that they understand your desires and can act accordingly. Open and honest communication is vital in avoiding any misunderstandings or conflicts.

Selecting the Right Agent for Your Power of Attorney

When choosing an agent for our power of attorney, it’s important to carefully consider their trustworthiness, competence, and willingness to act in our best interests. Selecting the right agent is crucial in ensuring that our wishes are carried out effectively and responsibly.

Here are some important considerations for choosing a power of attorney agent:

• Trustworthiness: Look for someone who’s a track record of honesty and integrity.
• Competence: It’s essential that the agent has the knowledge and skills to handle financial and legal matters.
• Willingness to act: The agent should be someone who’s willing and able to take on the responsibilities of the role.
• Communication skills: A good agent should be able to effectively communicate with all parties involved.
• Availability: Consider whether the potential agent will be readily available when needed.

When granting power of attorney to someone, it’s important to follow these steps:

1. Clearly define the scope of authority granted to the agent.
2. Choose a successor agent in case the original agent is unable or unwilling to act.
3. Consult with an attorney to ensure that all legal requirements are met.
4. Keep a copy of the power of attorney document in a safe and easily accessible place.
5. Regularly review and update the power of attorney as necessary.

Navigating the Legal Requirements for Power of Attorney in Estate Planning

To ensure compliance with legal requirements, we must understand and navigate the complex process of establishing a power of attorney in estate planning. Meeting the legal requirements is crucial to ensure that the power of attorney is valid and enforceable. It’s important to consult with an attorney who specializes in estate planning to guide you through the process. They’ll ensure that all necessary documents are prepared and executed correctly.

Documentation plays a vital role in meeting the legal requirements for power of attorney in estate planning. It’s essential to have the power of attorney document drafted properly, clearly stating the powers granted to the agent. Additionally, it’s important to have the document signed and notarized in accordance with the state’s laws.

Maximizing the Benefits of a Special Power of Attorney for Real Estate Transactions

We can greatly enhance the advantages of a special power of attorney by effectively utilizing it in real estate transactions. Here are five ways to maximize the benefits of a special power of attorney for real estate transactions:

• Expediting property transfers: With a special power of attorney, you can authorize someone to handle the necessary paperwork and tasks involved in transferring property ownership, saving you time and effort.
• Streamlining financial transactions: By granting someone the power to act on your behalf in financial matters related to real estate transactions, you can streamline the process and avoid delays or complications.
• Ensuring timely decision-making: With a special power of attorney, you can empower a trusted individual to make decisions on your behalf, ensuring that important real estate transactions aren’t delayed due to your unavailability.
• Facilitating negotiations and contracts: Your designated agent can negotiate and enter into contracts related to real estate transactions, ensuring that all necessary agreements are made in a timely manner.
• Providing flexibility and convenience: By utilizing a special power of attorney, you can have peace of mind knowing that your real estate transactions can continue smoothly even if you’re unable to be physically present.

Avoiding Common Pitfalls in Utilizing Power of Attorney in Estate Planning

To ensure a smooth and effective estate planning process, we must be mindful of common pitfalls when utilizing a power of attorney. One of the main risks to consider is appointing an inexperienced or untrustworthy agent. It’s crucial to select someone who’s reliable, responsible, and capable of managing your financial affairs.

Additionally, it’s important to clearly define the scope of the power of attorney to avoid any misunderstandings or misuse of authority. Regular communication with the agent is also essential to ensure that they’re acting in your best interests and to address any concerns or questions that may arise.

Learn about the five most common types of power of attorney, what rights are granted, limitations, and things to consider when setting up your POA.

We all imagine ourselves living long and fulfilling lives, but life is not always predictable. While many of us hope for the best, we often forget to plan for the worst. The best laid plans have contingencies and layers of protection for situations that can’t be planned for. One important layer of protection is a power of attorney.

This document can be designed to assist you (or a loved one) during any stage of life—whether you are preparing to have your baby at the hospital and submitting a medical POA on file just in case, or you’re caring for a sibling who was just diagnosed with a terminal illness and they need your help managing their finances while they undergo treatment. 

A Power of Attorney is when a person, known as a “principal,” gives financial, medical, or legal power to a selected person, known as an “agent,” to act on the principal’s behalf in certain situations and under specific circumstances. These powers include managing bank accounts, paying bills, investing, or buying and selling property. There are many types of power of attorney, and selecting the correct one for your specific needs and estate plan can help protect you and your estate. Let’s discuss the five types of power of attorney and which may best fit your individual estate planning needs.

5 Types of Power of Attorney

1. General Power of Attorney

A general power of attorney allows your authorized agent to act for you in all situations permitted by local law. A POA includes legal, financial, business, and health-related matters. A power of attorney typically ends when the principal becomes incapacitated—the purpose of a POA is to give someone else the authority to make decisions and take actions on the principal’s behalf when they can do so themselves. When the principal becomes incapacitated and unable to make decisions for themselves, they are no longer able to oversee the actions of their agent effectively, and the POA may be terminated by the court. A general POA can be durable or non-durable, depending on your needs. A non-durable POA can allow for the following rights:

• Managing the principal’s financial affairs, such as paying bills, managing bank accounts, and investing assets
• Hiring professionals, including medical help and consenting to medical treatments
• Buying, selling, or renting real estate on the principal’s behalf
• Purchasing insurance policies
• Operating the principal’s business
• Representing the principal in court, settle any outstanding financial or legal claims
• Filing taxes and claiming government benefits

A general POA gives your agent a wide range of power over your affairs, but there are still some things they can’t do. Here are some examples of limitations on an agent acting within a POA:

• The agent can not change your will or estate plan
• The agent can not transfer responsibility to another agent
• The agent has a fiduciary duty and can not act outside the principal’s best interest
• The agent can not use the principal’s assets or money as their own
• The agent can not take compensation beyond what is outlined in the POA

2. Special Power of Attorney

A special power of attorney, also called a limited power of attorney, grants limited powers under specific, clearly laid-out circumstances. This type of POA is used when power needs to be granted, but the scope of that power is specific to a particular situation. An example of this POA would be if you need to travel outside the country for business and you are selling your home and need someone to sign documents on your behalf. The rights, scope, and limitations of the special power of attorney are laid out in the document, and no action can be taken outside what is specified. 

3. Durable Power of Attorney

A durable power of attorney survives incapacitation. In Virginia, a POA is considered a durable POA unless otherwise stated. A durable POA is active even when the principal becomes incapacitated. This avoids the process of the court appointing a conservator. This is the only POA that operates in this manner. With other POAs, incapacitation means the POA is revoked, and the court will get involved unless other estate structures are in place to mitigate this process. A durable power of attorney can grant you permission to:

• Act on your parents’ behalf on any matter
• Sign legal documents
• Advising on healthcare decisions
• Making financial and business decisions

The limitations on an agent acting within a durable POA are the same as with a general POA. Here is a specific example of a common circumstance that arises with the limitations of a durable POA:

• An agent can not transfer responsibility to another agent. In cases where you are caring for another person who is incapacitated and you are unable to fulfill your duties under the durable POA. The situation would go to court for a guardian or conservator to be appointed

4. Springing Power of Attorney

A springing power of attorney, also called a conditional POA, is a valid and legal document on the day it is signed but becomes active when a specific event or condition occurs. As the name suggests, the power of attorney “springs” into effect when the outlined contingency is satisfied. This is a common selection by many people planning their estate because it allows them to keep control but has a plan in place for “just in case” situations. 

The drawback to a springing POA is that there would need to be a consensus that the “springing” event has occurred, which can be challenging to prove. One example is when a springing POA is in place for incapacity, and the principal is diagnosed with dementia. They may experience what medical professionals call “sundowning,” where they are fully coherent and able to make decisions in the morning, and by evening they are not. Here are a few limitations and drawbacks to a springing POA:

• Family members might have different opinions on if the “springing” event occurred 
• Certification from a doctor can cause delays
• Just because your agent has the springing POA doesn’t mean they will act on it, especially if there isn’t an agreement regarding incapacitation.
• Not all financial institutions will accept a springing POA unless they can certify it was signed by a medical professional.

Determining incapacity can be a complex and subjective process, and it may be challenging to agree on whether the principal is incapacitated. This can lead to disputes and legal challenges and cause delays in getting help which can impact the principal and their family. Delays can result in improper and sub-par care.

A power of attorney can only become active if the principal and agent both can sign the documents. If there is any question of incapacity, then the POA will not be valid. This distinction is important because, many times, people wait until it is too late to get a POA in place. If this is a POA that the principal is interested in then it is best to sign it early instead of when decline is taking place.

5. Medical Power of Attorney

Watching your child turn 18 is a momentous occasion for any parent, marking the transition from childhood to adulthood and the beginning of a new phase of life. Many parents are helping their adult children obtain a medical POA. As kids head off to college, the reality is that parents no longer have the legal authority to make decisions for their adult children. Many families file a medical power of attorney in case of emergency so the parents can still direct medical decisions at the hospital if anything happens. Here are some things to consider when planning your medical POA:

• Have a conversation with your agent about your wishes and how you want your medical decisions made.
• If your views change, be sure to have another conversation and update your medical POA on file.
• Be specific with the medical decisions–do you want your agent to make the same medical decisions if you are pregnant? If a decision arises where the question of permanency comes into play, can they make a permanent decision, or would you prefer for a guardian chosen by the court to step in?
• File a copy of your medical POA with your medical records at our doctor’s office or the medical facility where you will be treated. 

When you die, any power of attorney will be null and void, and your estate will default to the other structures you have in place. That could be a will that passes through probate or a living trust operating according to the trust’s instructions. If your estate plan is centered around a will, then the executor of your estate will take over. You can name your executor in your will or allow the court to appoint an executor during the probate process. 

A Power of Attorney is an important legal document to include in any estate plan. The agent you select will take over medical care, financial management, and other vital decisions if you cannot do so. Understanding the different types of Power of Attorney, the rights granted, and the limitations will help you make the best decision for your estate.

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Serving clients throughout Virginia, our experienced and trustworthy professionals simplify the process using clear, understandable language free of legal jargon and provide flat-rate packages, so you’re never surprised by the bill. Contact us today and rest assured that your affairs are in order and your loved ones are protected.