Powers of Attorney are a common term in estate planning. However, many people do not know what they actually mean. The majority of people think that having a last testament and will is sufficient to ensure their assets land in the correct hands. Frankly, a last will and testament only scratches the surface. Modern estate planning aims to be more comprehensive and detailed, and to offer all kinds of benefits for you and your loved one, both now and in the future.

Power of Attorney is a document that allows a person to appoint another individual to act for them in times of need. You’ve probably had to make difficult decisions for loved ones who couldn’t handle it themselves. As a parent, you know how dependent your children are on you. The safety net of a parent keeps their child out of danger.

Parents can no longer control a person’s life once they reach adulthood. The question then is who will take care of your obligations should you become incapacitated or go missing? Who will be in charge of your finances and health?

The five types of powers-of-attorney explained by the Estate Planning Lawyer in San Francisco CA:

1. Durable Power of attorney

The durable power allows a designated agent to manage your estate in conjunction with you. This agent will continue to act in your place if you are incapacitated. So long as your mind is clear, you can continue to control all financial and medical matters. Powers of attorney are normally effective immediately after you sign them, although you can make it conditional. Only when you become incapacitated can you choose the person to make decisions on your behalf. Powers of Attorney are revocable. Powers of attorney can be altered or revoked at any moment. Power of attorney terminates on your death.

2. Power of Attorney Non-durable

The agent you nominate for a power of attorney that is not durable can only act while you are still alive. They will lose their power if you are incapacitated or if you die. In the event that you become incapacitated or die, your durable power of attorneys can take care of all financial and medical matters for you. Non-durable powers can be used by someone to make decisions on your behalf in the event of unconsciousness.

3. General Powers of Attorney

The financial power of attorneys is also known by the general power of Attorney, because it allows the appointed agent to control several economic aspects of the estate. Payment of bills, entering/ending contract, buying/selling properties, managing transactions and making investments are all included in the responsibilities and sanctions.

4. Medical Powers of Attorney

When you are clinically diagnosed as mentally impaired or compromised, you can choose who you want to be in charge of managing your health care. This individual will determine what kind of treatment you receive or the procedures that you undergo when incapacitated. Also, they have the final say on medical issues such as organ donation, release medical reports, artificial support for life, and surgery.

5. Limited Powers of Attorney

The limited power-of-attorney allows your agent to act for you in a certain situation or with a certain objective. You can create a number of them, giving each agent different powers and duties. The power of attorney may be terminated by a specified time or after the purpose has been completed.