Differences Between Limited Power of Attorney and General Power of Attorney
A power of attorney (POA) is a legal document that grants another person, known as your agent or attorney-in-fact, the authority to act on your behalf in legal and financial matters. There are two primary types of POAs: limited power of attorney (LPOA) and general power of attorney (GPA). Understanding the differences between these two types is crucial when planning for your future. If you need assistance understanding or creating a power of attorney, contact the Law Offices of Terri D. Mason, P.C.
Limited Power of Attorney (LPOA)
An LPOA is a valuable tool for Baltimore residents who need assistance with specific tasks but prefer not to grant broad authority to their agent. Common scenarios where a limited power of attorney might be beneficial include:
- Real Estate Transactions: Whether you are buying or selling property in Baltimore, an LPOA can authorize your agent to handle the necessary paperwork and negotiations on your behalf.
- Managing Finances During Temporary Absences: If you are planning to travel or are temporarily unable to manage your finances due to a medical condition, an LPOA can empower your agent to pay bills, deposit checks, and handle other financial matters.
- Healthcare Decisions: An LPOA can ensure that your medical wishes are respected even if you are temporarily unable to communicate them yourself, allowing your agent to make decisions about your care in Baltimore hospitals and medical facilities.
General Power of Attorney (GPA)
A General Power of Attorney (GPA) is a more comprehensive document that grants your agent broad authority to handle a wide range of your affairs. This type of POA is often used for long-term planning, particularly in situations where you anticipate becoming incapacitated or unable to manage your affairs independently.
Under a GPA, your agent may be authorized to:
- Manage Your Finances: Access and manage your bank accounts, pay bills, and make financial decisions on your behalf.
- Handle Legal Matters: Represent you in legal proceedings, sign contracts, and make decisions about your assets.
- Make Healthcare Decisions: Choose your medical treatment, consent to surgeries, and decide on end-of-life care.
A GPA is often a crucial component of a comprehensive estate plan, ensuring that your affairs are handled according to your wishes even if you are unable to communicate them yourself. However, it is important to choose your agent carefully and trust their judgment, as they will have significant power over your life.
Choosing the Right Power of Attorney for Your Needs
Selecting the most suitable Power of Attorney in Maryland requires careful consideration of your individual circumstances, preferences, and long-term goals. At the Law Offices of Terri D. Mason, P.C., our Baltimore estate planning lawyer recognizes that each client’s situation is unique. Here are some factors to consider when choosing a power of attorney in Baltimore:
- Scope of Authority: Do you need assistance with a specific task (LPOA) or comprehensive management of your affairs (GPA)?
- Duration: Do you need temporary assistance (LPOA) or long-term management (GPA)?
- Trust and Confidence: Are you comfortable granting broad authority to your agent (GPA), or do you prefer a more limited scope (LPOA)?
- Your Individual Needs: Do you have specific concerns, such as managing property in Baltimore, making healthcare decisions, or ensuring your financial affairs are handled in your absence?
The Law Offices of Terri D. Mason: Your Trusted Legal Partner
If you have questions about powers of attorney or need assistance with estate planning, contact the Law Offices of Terri D. Mason, P.C. today. Our dedicated trust and estate lawyer is committed to providing personalized legal services to meet your specific needs. We understand the importance of safeguarding your future, and we’re here to help you every step of the way.
Contact us today to schedule a consultation and learn more about how we can assist you with your legal needs.