How Do a Last Will and Power of Attorney Work Together?

Types of powers of attorney

While all powers of attorney serve the same function of giving someone else authority to act for you, there are several types:

•  A durable power of attorney. This type is applicable from the date it is executed. If you sign it today, your son can manage your bank account tomorrow without any further authorization. It remains in effect whether you are incompetent or not.
• A springing power of attorney. This type is executed but does not go into effect until the occurrence of some event, usually the incapacity of the person creating the form. If you create a springing power of attorney today, your son cannot access any of your financial affairs until you are unable to do so yourself. Generally, a physician’s letter or documentation is necessary to place this type of power of attorney into effect.

It is also possible to pick and choose what authority your power of attorney will give to your attorney-in-fact. Some states have boxes you can check so you can choose specific types of authority to give. A financial power of attorney might give your son only the right to manage your financial affairs, such as paying bills, but not the right to do things, such as sell your real estate.

Hand in hand

It is almost always recommended that you create a will and a power of attorney together. The power of attorney provides protection during your lifetime, while the will provides protection after your death. Together, they provide an ongoing umbrella of protection for your assets.