A power of attorney is a legal arrangement that grants the POA decision-making powers on behalf of another person they represent. The person giving the powers to someone on their behalf is called the principal, and the person obtaining that authority is the power of attorney.

The attorney is made after careful consideration, usually someone close to the principal, like a friend, who executes the principal’s wishes and takes tough decisions in their best interest.

The POA wields significant powers on the principal’s behalf. However, their decisions can be revoked, challenged or restricted via courts. A POA can be revoked by submitting a notarized revocation letter by the grantor, mentioning the intent in circumstances like a divorce.

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Additionally, POAs are of different types with different powers, defined for various scenarios.

Conventional POA

A conventional or a limited POA can step in in the principal’s absence for specific events, which can be pre-determined, like financial decisions to be made when the principal is outside the country or suffers from a severe health problem.

Durable POA

A durable POA is an arrangement where the attorney can only be revoked after the principal’s death. So, the POA’s power can continue even when the principal is incapacitated.

A durable POA also makes decisions under pre-determined situations, like those regarding the operation of the principal’s investment portfolio, but the power ceases after the principal’s death.

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Springing POA

A springing POA is made for specific dates, events, and situations like total or partial incapacitation. It usually takes effect after the principal is incapacitated. This type of POA can be made only when the principal has a medical condition or works or lives in dangerous situations. For instance, a military officer may appoint a relative as an attorney if they get hurt during service and incapacitated. In this case, the attorney will handle all the principal’s affairs.

Medical POA

This arrangement is strictly for medical decisions. The attorney can only represent the principal’s wishes on medical matters, such as choice of treatment or life care. If the principal is on life support, the attorney can decide whether to continue or discontinue it based on what the principal would have wanted. This arrangement only works if the principal cannot make medical decisions in situations like a comma or other serious illnesses.

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