What Is Power of Attorney?
With a Power of Attorney (POA) document, you (the “principal”) can appoint someone to act on your behalf known as an agent or attorney-in-fact. Your agent should be someone you completely trust in making financial and legal decisions for you. In North Carolina, you must be at least 18 and of sound mind to establish a Power of Attorney. Your Power of Attorney document should be stored in a safe, secure place and a copy should be provided to your agent. Listed below are several important terms to remember when looking at appointing a Power of Attorney:
- Durable Power of Attorney: A Power of Attorney that remains in effect even if you become incapacitated. In North Carolina, a Power of Attorney is considered to be durable unless it specifically states that it ends upon the principal’s incapacity
- Springing Power of Attorney: A Power of Attorney that can “spring” into effect only in the occurrence of a future event, such as your incapacity or incompetence
- Special or Limited Power of Attorney: A Power of Attorney granting your agent only certain powers or powers within a specified time period