A power of attorney (POA) gives someone legal authority to act on your behalf. Many people think one POA is enough, but that is not always the case. Having more than one POA can help protect your interests and ensure that the right people manage your affairs.
Different types of power of attorney
There are different types of POAs, and each serves a specific purpose:
- A financial POA allows someone to manage your money, pay bills, and handle banking transactions.
- A medical POA (also known as an advance directive) lets a trusted person make healthcare decisions if you cannot.
- Some people also use a limited POA, which only applies to certain tasks, like selling a home while they are out of the country.
Multiple POAs may be necessary because you might trust one person with your finances but prefer someone else to make medical choices. Naming separate people for these roles can reduce stress and prevent conflicts.
Why you may need multiple power of attorney documents
A bank or financial company may not accept a general POA and instead ask for their own version, which can create problems if you only have one POA. Preparing multiple POAs ensures your chosen person for each situation can act without delays.
Another reason to have multiple POAs is to avoid giving too much power to one individual. If one person controls both financial and medical decisions, they might misuse their authority. Splitting responsibilities between two or more trusted people can create checks and balances.
You may also need separate POAs for different states. If you own property in Maryland but spend time in another state, that state may not recognize your Maryland POA, so having a valid POA in each location can prevent legal issues. Furthermore, you may wish to have a backup for each role in case someone is unable to serve when needed.
A well-planned POA setup can prevent confusion and protect your future. By using multiple POAs, you make sure that the right people handle your affairs when you need them.