What Are the Different Types of Power of Attorney in St. Petersburg, FL?

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A power of attorney is a powerful legal tool, especially when it comes to estate planning in St. Petersburg, Florida. In brief, giving someone power of attorney means that you’re appointing them to take action on your behalf when you’re incapacitated or otherwise unable to act on your own behalf. But of course, it’s not that simple. There are different types of power of attorney, and they are used at different times and for different purposes. If you’re going to use this particular legal tool, you’ll need to know which type best suits your needs. Take a look at what you need to know about the different types of power of attorney.

Limited Power of Attorney

The word “limited” gives you a clue about what this type of power of attorney means. It’s a power of attorney that only applies for a short period of time or for a single specific purpose. For example, if you were leaving the country and needed someone who was empowered to handle your financial transactions at home while you were away, you could give them a power of attorney that would apply only until the date that you expected to return home. You might also restrict that person to certain specific transactions that you expect will need to be handled during that time, instead of giving the person with your power of attorney the authority to handle all possible transactions that might arise during that time.

Limited power of attorney can also be used when you want to hand over certain transactions to someone who has more expert knowledge on a subject than you do. For example, you might give your financial advisor a limited power of attorney that allows them to buy or sell securities on your behalf. This would not allow them to, for example, withdraw money from your account or close the account without your approval. Or, your CPA might need a limited power of attorney to file your tax return for you, but this wouldn’t give them the authority to cash and spend your refund check.

General Power of Attorney

A general power of attorney is one with a considerably broader scope than a limited power of attorney. It gives the person who is granted the power of attorney the authority to do all of the things that you have the authority to do. That means they could sign contracts on your behalf, conduct financial transactions, handle legal matters, and other things as well.

A general power of attorney stays in effect until one of three things happens: until you rescind the power of attorney, until you die, or until you become incapacitated. So, a general power of attorney is not what you would use if you expected to become incapacitated and wanted that person to make your decisions (unless it is also a durable power of attorney.) If you become incapacitated and can no longer make decisions for yourself, a general power of attorney would become invalid, and if there was no other legal provision in place, a court would have to appoint someone to take over the management of your estate at that point. You can rescind a general power of attorney at any time, so long as you’re not incapacitated at the time.

Durable Power of Attorney

A durable power of attorney could be either general or limited in scope. The important thing to know about a durable power of attorney is that it remains in effect even after you become incapacitated. This means that if you become incapacitated unexpectedly, because of an illness or injury, for example, the person who holds your power of attorney can carry on making decisions and taking actions on your behalf without waiting for the court to appoint a guardian or conservator.

A durable power of attorney might be important, for example, if you own a business that would require decisions to be made on a continuous basis. If you were incapacitated and no one else was empowered to make those decisions, your business could suffer serious losses in the meantime. A durable power of attorney would prevent that.

Springing Power of Attorney

A springing power of attorney also allows the designated power of attorney to act on your behalf if you become incapacitated. The difference between a durable power of attorney and a springing power of attorney is that the springing power of attorney does not take effect until you become incapacitated, unlike the durable power of attorney which is in effect both before and after incapacitation. It’s important to note that as of October 2011, the state of Florida no longer recognizes springing power of attorneys. However, springing powers of attorney executed before October of 2011 are grandfathered in, meaning that if the power of attorney was put in place before the change in the law, it will remain valid. Florida also recognizes valid powers of attorney executed in other states as well as military powers of attorney, and those may include springing powers of attorney. So, while a new springing power of attorney created in Florida would not be valid, it’s still possible to encounter a valid springing power of attorney in Florida.

If you wanted a power of attorney that functioned like a springing power of attorney but was valid under Florida law, the solution would be to have your lawyer create a durable power of attorney but ask them to hold off on delivering the executed document to the designated agent who will hold the power of attorney until a specific event happens. The specified event is usually some certification of incapacity. This way, you could designate someone who will be able to take over your affairs while you’re incapacitated without empowering that person to make decisions on your behalf before you become incapacitated.

Understanding the different types of power of attorney can help you make decisions about which type might best suit your situation, but you should consult The Law Offices of David P. Folkenflik in St. Petersburg, Florida, to get a more detailed analysis of which power of attorney meets your personal needs.

"The information provided herein is simply a brief overview of the Florida law on this particular matter. It should not be relied upon for legal purposes, as the facts and circumstances to any specific legal matter may vary substantially from the limited explanation and application of often complicated legal rules and principles that may be addressed herein, or applicable in your particular legal matter. You should only rely upon legal advice provided to you by a licensed attorney who has had an opportunity to fully evaluate your particular legal matter".

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