Financial Powers of Attorney
A financial power of attorney gives a person you designate the authority to act on your behalf in financial matters. This can be limited to one financial transaction or certain types of transactions, or it can include all types of transactions. You will need a financial power of attorney if you want someone to be able to act for you in some or all of your financial dealings. This is usually done when you have distant or numerous financial matters to attend to and cannot be there personally to manage them.
Springing Power of Attorney
Nearly all states provide for a financial power of attorney that does not become effective until the principal becomes mentally or physically incapacitated. This document is called a springing power of attorney because it "springs" into effect upon the determination of one or more physicians that the principal has become incapacitated. This allows the principal to have a power of attorney in place for emergencies, without having to give the agent immediate authority.