May 13, 2016
Power of Attorney, these words means different things to different people. In Michigan there are 2 types. The first is Medical Durable Power of Attorney and the second is a Financial Durable Power of Attorney.
Medical Durable Power of Attorney
This is when an individual gives power of attorney over to a trusted person, usually a close relative, to make medical decision for him/her. This ability kicks in only when a person is incapacitated or unable to make these decisions for his/herself. An often thought of example is when someone is unconscious or in a persistent vegetative state. This situation is really not all that common. A MDPOA is most often used when an individual is suffering from some form of confusion that prevents him/her from understanding what is occurring. This can be brought on by a reaction to medication, an infection, or a high fever. It can also occur as a result of dementia or Alzheimer disease. Whatever the reason, this power is only valid for the time period when and individual cannot make decisions for him/herself. The power goes away when the inability goes away.
Financial Durable Power of Attorney
This power of attorney is more permanent than the MDPOA (Medical Durable Power of Attorney). Financial Power of Attorney is also much more far reaching. It is more than just putting someone's name on your bank account. When you give someone financial power of attorney, that person steps in your shoes in regards to your finances. He/she can take out a mortgage on your property, sell your home, apply for credit in your name. The person with the financial power of attorney can manage all of your finances as if he/she was you. This power exists at all times. It is not temporary like the MDPOA. Some folks have run afoul when handing over financial power of attorney to someone. This should only be given to someone you know you can trust. Be careful when choosing whom you give this power to.
The JRothstein Law Group PLLC. Located in DeWitt, MI and serving: Ingham, Clinton, Eaton, Livingston, Ionia, and Shiawassee counties. Call us today for a free phone consultation.