What are the Different Types of Power of Attorney in Virginia?
One of the most important estate planning tools you should consider is the power of attorney (POA). POAs give someone you trust the authority to act on your behalf under specific circumstances. This could mean managing finances, making healthcare decisions, or handling your day-to-day responsibilities. POAs provide peace of mind when planning for the unexpected. In this article, the Virginia Beach estate planning lawyers at The Law Office of Angela N. Manz will discuss POAs and how to choose the best one for your situation.
What is a POA?
A POA is a legal document that grants another individual (called the Agent or Attorney-in-Fact) the authority to act on your behalf. The scope of that authority depends mostly on the type of POA you create. Under Virginia law, the Virginia Uniform Power of Attorney Act governs such documents.
To create a valid POA in the State of Virginia, you must be of sound mind and sign the document in the presence of a notary public. The scope of your POA can be broad or limited, temporary or permanent, depending on your individual needs.
Different types of POAs in Virginia
- General POA – Gives your agent authority over a wide array of financial and legal matters, up to and including all the affairs you’re unable to manage when you’re incapacitated or unavailable. A general POA can manage your bank accounts, pay your bills, file your taxes, and buy or sell your property. A general POA becomes invalid if you become incapacitated unless it’s a durable POA.
- Durable POA – Remains in effect when you become mentally or physically incapacitated. It is particularly valuable for long-term planning. It allows your agent to step in and make decisions when you cannot. Virginia law requires clear language in the durable POA document to make it durable. It must specify that the POA will not terminate if you become incapacitated.
- Limited POA – Also known as a specific power of attorney, it grants your agent authority over a single transaction or a limited number of tasks. You might use a limited POA if you need someone to sell property on your behalf while you’re away or want your agent to handle a specific financial account. Once the task is complete, the limited POA expires.
- Springing POA – Becomes effective when a specific event occurs, such as you becoming incapacitated. This type of POA provides flexibility for anyone wanting to maintain control over their affairs until they can’t anymore. The springing POA must clearly specify the triggering event. Generally, this will involve the formal decision of a physician or the court.
- Healthcare POA – Can make decisions concerning your medical treatment on your behalf when you are unable. This includes approving or declining medical treatment, discussing your care plan with providers, and deciding on long-term care options.
- Financial POA – Focuses solely on financial matters. Your agent can manage your investments, oversee your retirement accounts, and handle real estate transactions.
Talk to a Virginia Beach Estate Planning Attorney Today
The Law Office of Angela N. Manz represents the interests of individuals seeking to create a comprehensive estate plan. Call our Virginia Beach estate planning lawyers today to schedule a consultation, and we can begin discussing your next steps right away.
