Life can be unpredictable, and there may come a time when you need someone to handle important matters for you. A power of attorney (POA) is a legal tool that makes that possible. It gives another person, called an agent, the right to act on your behalf in specific situations.
New Hampshire recognizes several types of POAs. Each serves a different function, depending on your needs and circumstances.
Durable power of attorney
A durable power of attorney lets someone step in to manage your affairs if you cannot do so yourself. It is often used for financial matters, such as paying bills, accessing accounts or handling investments. In New Hampshire, most powers of attorney are considered “durable” by default. This means they remain valid even if you lose the ability to make decisions.
General and limited powers of attorney
A general POA gives broad authority to manage your financial and legal affairs. This might include filing taxes, accessing accounts or signing contracts. A limited POA is more restricted. It allows the agent to complete a specific task, like signing closing documents for a home sale.
Springing power of attorney
A springing POA only takes effect after a specific event occurs, such as a medical declaration of incapacity. Until that point, your agent cannot act. This type of POA must clearly outline how and when it becomes active.
Health care power of attorney
This POA lets someone make medical decisions for you if you can’t speak for yourself. It typically forms part of an advance directive. The agent may approve or refuse treatments, based on your known wishes.
Each type of POA plays a unique role in estate planning. Understanding how POAs work helps ensure your affairs are handled as intended. Before making any commitments, it’s important to gather as much legal information as possible.
