What is the difference between power of attorney and proxy?

Answer 1

Power of Attorney

A principal who has legal capacity must execute a Power of Attorney voluntarily naming an attorney-in-fact. The principal must have the legal capacity to execute the POA. They must understand what they are doing, why they are doing it, understand the effects executing the POA will have and they must not be unduly influenced or pressured by someone else to do it. The principal should discuss it with an attorney who can review their situation, listen to their needs, explain their options and explain the consequences.

Most states grant certain statutory powers to an attorney in fact under a POA and those may include power to make medical decisions. A POA may also be specifically constructed to grant only certain powers. Durable POA is effective even after the principal has become incapacitated due to age or illness. A general POA expires when the principal becomes incapacitated.

An attorney-in-fact must be a trustworthy person. They will have complete control over the principal's assets. A POA is a powerful instrument that should always be drafted by an attorney and to fit the needs of the principal. To create a power of attorney a person must:

• Be at least 18 years old;
• Intend to give the power to the person designated in the document; and
• Be mentally competent, which means able to understands the document;
• Understand which powers are being granted; and
• Understand which property is affected by the power granted.

Unless you are absolutely sure about what you're doing and fully informed about the consequences, you should consult an attorney. A POA grants sweeping powers to your attorney-in-fact. They will have complete access to your assets and will need to be capable of keeping good records. They should keep an account of all the money coming in and all the money going out by their hand. They must be trustworthy, organized, intelligent, reliable and act in a professional manner where your finances and property are concerned.

A medical power of attorney will enable your agent to make medical decisions on your behalf if you should become unable to make those decisions for yourself.

Trust

A trust is a legal relationship whereby an individual (the trustor) or group of individuals transfers title to their property to a trustee. The purpose is to protect the property from creditors, relatives, any claims or liens made against the individuals, to remove property from an individual's estate, to control how the property will be distributed at death, to minimize taxes, to protect assets from a spendthrift child or beneficiary, etc. The trustee must manage the trust property, pay over the profits from and protect the property according to the terms set forth in the trust instrument.

There are many types of trusts and trust law is complicated. A trust instrument should always be drafted by a professional in order to meet the needs of the trustor and meet the requirements of federal and state laws.

Answer 2

"Power of attorney" means a written instrument. "Attorney-in-fact" means a person granted authority to act for the principal in a power of attorney, regardless of whether the person is known as an attorney-in-fact or agent, or by some other term.

Answer 3

A health care power of attorney says someone can make medical decisions for you if you cannot, for example, if unconcious. A health care proxy lets you appoint someone to make these decisions for you if unable to but can include other legal authority, such as handling financial and legal decisions for you.

Answer 4

hello I would like to know if from a legal point of view their is a difference between a proxy and a power of attorney. Thanks