What Are Different Types of Healthcare and Financial Powers of Attorney?

When composing your estate plan, an important step you must take is designating your powers of attorney. With this, you must ensure that this is a legally enforceable document that meets your needs and protects your best interests. Follow along to find out the different types of healthcare and financial powers of attorney and how a proficient Monmouth County, NJ powers of attorney lawyer at Margaret M. Mahon, Esq. LLC can help you in creating them.

How are powers of attorney defined in the state of New Jersey?

The state of New Jersey views a power of attorney as a legal document that designates an agent who you can trust and who can act on your behalf should you ever become incapacitated or unable to do so on your own. Such an agent can be a friend, family member, or business entity, such as a bank. And such an act can be related to your healthcare or financial affairs.

Of note, a healthcare or financial power of attorney must be conveyed in writing and be signed in the presence of a notary public for it to be considered legally enforceable in the state of New Jersey.

What is a healthcare power of attorney?

The state of New Jersey recognizes a healthcare power of attorney, which is otherwise referred to as a healthcare proxy. This document gives you the right to appoint an agent to make certain critical healthcare decisions on your behalf, such as accepting or refusing treatment. In this state, you may only nominate a single person to make such decisions, but you may list a backup should that person be unavailable.

What are the different financial powers of attorney?

Additionally, the state of New Jersey recognizes a financial power of attorney. The different types read as follows:

  • A general power of attorney: This grants your agent power over financial matters that can be for both personal or business transactions (i.e., filing tax returns, executing a contract, borrowing money, etc).
  • A non-durable power of attorney: This is only enforceable when it comes to certain established financial transactions (i.e., paying bills, selling property, etc).
  • A durable power of attorney: This takes effect once you become incapacitated and will stay in effect until you pass away. In other words, this power of attorney gives your agent full control over your assets.

With all that being said, you must select a power(s) of attorney that best suits your situation. If you require additional guidance with this, you must retain the services of a talented elder law attorney in Monmouth County, NJ as immediately as possible.

Contact Our Red Bank, New Jersey Firm

The planning and administration of an estate require experienced legal guidance. If you need an effective attorney to assist you with matters of wills, trusts, and estates, or the taxes associated with them, contact Margaret M. Mahon, Esq. LLC today to schedule a consultation.