A durable power of attorney (POA) is a legal document that allows an individual (called the "principal") to appoint someone else (called the "agent" or "attorney-in-fact") to make financial and legal decisions on their behalf. The durable POA remains in effect even if the principal becomes incapacitated or unable to make decisions for themselves.
On the other hand, a limited POA or springing POA only takes effect under certain specified circumstances, such as when the principal becomes incapacitated. A springing POA requires the agent to provide proof, such as a doctor's statement, that the principal is incapacitated before the POA can be exercised.
One key difference between durable and limited/springing POAs is that the durable POA is effective immediately, while the limited/springing POA only becomes effective at a later time or under certain conditions. This means that the agent named in a durable POA has the authority to act on behalf of the principal as soon as the POA is signed, while the agent named in a limited or springing POA does not have that authority until the specified conditions are met.
Another difference is that a durable POA remains in effect until it is revoked by the principal or until the principal dies, while a limited or springing POA automatically terminates when the specified conditions are no longer met (such as when the principal regains capacity).
It's important to carefully consider which type of POA is best for your needs. A durable POA may be necessary if you want to ensure that your financial and legal affairs are taken care of in the event of incapacitation, while a limited or springing POA may be more appropriate if you only want to grant someone else the authority to make certain decisions under specific circumstances.
Regardless of which type of POA you choose, it's important to select a trusted and reliable agent and to carefully review and understand the terms of the POA before signing it. It's also a good idea to discuss your plans with an attorney or financial planner to ensure that your POA meets your needs and protects your interests.
