Powers of attorney, explained without the legalese

Two documents, two jobs

A financial power of attorney lets someone act on your money: pay bills, file taxes, manage accounts. A healthcare power of attorney lets someone make medical decisions when you cannot. They are separate documents, and they do not have to name the same person.

When each one switches on

This is the detail that surprises people. A durable power of attorney takes effect the moment you sign it and stays effective if you become incapacitated. A springing power of attorney only activates once a doctor certifies that you cannot act for yourself, which sounds safer and is often slower in practice.

1. Durable: effective immediately, survives incapacity, fastest for the person you name.
2. Springing: effective only on a triggering event, usually a physician's certification.
3. Limited: effective for one specific transaction or a fixed window of time.

Choosing your agent

Pick availability over seniority. The right agent is someone who answers the phone, keeps records, and will not be paralyzed by a hard call. That is not always the oldest child.

The best agent is not the most successful person you know. It is the one who will pick up on a Tuesday afternoon.

Powers of attorney are governed by state law and the forms vary, so have a licensed attorney in your state draft or review yours. Bonduran can help you decide what to ask for before that meeting.