Many Nevada residents have older parents who will likely need help managing money and making health care decisions as they age. One way to ensure that this will be handled properly is to suggest that they grant a power of attorney to a child, close friend or other trusted individual.
There are several different types of powers of attorney and each one grants different rights and responsibilities upon the person to whom it is given. They include springing, durable, financial and health care, and each one is designed to fulfill a specific purpose. Individuals who are interested in granting a power of attorney to a relative, friend or trusted individual should have a clear understanding of the various types and the powers and restrictions of each one.
For example, a durable power of attorney grants the agent the right to manage all or specified aspects of the principal’s life. It goes into effect when it is signed and is only revoked upon the death or affirmative act of the principal. On the other hand, a springing power of attorney takes effect only in an emergency situation when the principal is not able to speak on his or her own behalf due to being incapacitated. Once the principal becomes able to act, the springing power of attorney is no longer in effect.
A lawyer with a background in estate planning might explain the various types of powers of attorney and help an individual determine which type is most applicable to his or her situation. There are strict state laws and regulations covering the execution and content of all types of powers of attorney that the lawyer will explain.
Source: Forbes Magazine, “When Should You Get Power Of Attorney For A Parent?”, Eileen Beal, Jan. 7, 2015