Durable vs. General Power of Attorney: What’s the Difference?

A power of attorney document is one of the most important tools to incorporate into your estate plan. Even if you enjoy relatively good health, life can hit you with the unthinkable. If you end up incapacitated due to illness or injury, you’ll need a trusted person to make medical and financial decisions on your behalf.
There are two types of power of attorney: general and durable. While an experienced estate attorney in Cincinnati can help you compare the specifics of each arrangement, it’s beneficial to know how each works.
General Power of Attorney
When you create a general power of attorney document, you give a trusted family member, friend, or professional the authority to make crucial decisions on your behalf. For example, a general power of attorney can pay your bills and make deposits to your bank accounts, conduct business transitions for you, handle your insurance claims, file your tax returns, , arrange end-of-life care, and perform other functions on your behalf.
Choosing a general power of attorney has one significant disadvantage: It expires when you can no longer communicate your wishes or make sound decisions on your own behalf, even when you’re still alive. If you think you may face this situation, consider delegating a durable power of attorney instead.
Durable Power of Attorney
A person you delegate as your durable power of attorney can perform the same duties as previously mentioned. As with general power of attorney, the durable kind expires upon your death. However, a durable power of attorney retains authority if you remain alive but become incapacitated.
With typical cognitive and physical declines that come with age, you never know when your decision-making capacities can disappear instantly. A durable power of attorney is typically the better choice than general if you want to ensure that your financial and medical wishes are maintained when you no longer have capacity. You might want to consider a durable power of attorney under the following circumstances:
- You’re getting ready for adventurous travel.
- You’re preparing for a serious medical procedure or surgery.
- You want to prepare yourself and your family for the unlikely onslaught of a sudden injury or sickness.
- You receive a diagnosis of a chronic or degenerative disease.
- You have a spouse, family member, or friend you would trust completely to make medical or financial decisions that serve your best interests.
Limits to Durable Power of Attorney
If you delegate someone to hold durable power of attorney, you don’t have to give them control over all your decision-making. You can limit what this person can do depending on your wishes and circumstances. For example, you can name one person as your financial power of attorney and delegate someone else as medical power of attorney—both of which can be durable.
More specifically, someone with medical power of attorney can only make decisions regarding your healthcare and carry out your preferences regarding treatment options, extraordinary measures, hospitalizations, medications, end-of-life care, and other health-related aspects. A durable power of attorney limited to financial decisions involves collecting insurance benefits, drawing from or depositing to bank accounts, making charitable donations, and other money-related actions.
A Lawyer Can Help You Establish Power of Attorney
If the choice between general and durable power of attorney is not straightforward for you, a Cincinnati-based probate and estate lawyer can add clarity. A power of attorney is one of several vital documents making up a comprehensive estate plan. A durable power of attorney ensures that your medical and financial preferences are followed, even when you can no longer speak for yourself. To learn more about issues related to power of attorney, contact Donnellon, Donnellon & Miller today to schedule an initial consultation today.