Some people simply are not able to manage their own financial affairs. For these people, there are a number of courses of action, depending on the mental state of the person and the laws of the home state. A popular choice is to obtain a power of attorney, which is a notarized, revocable document allowing you to handle a specific matter or a wider range of affairs. It can involve one or more than one person, but if they are required to act together, getting consensus on how to handle your affairs will, undoubtedly, prove to be irritating and infuriating at times.
There are three types of power of attorney:
- (1) a Durable Power Of Attorney that remains in effect during incompetence or other disability;
- (2) a standby power of attorney that is triggered when there is an incapacity to manage affairs; and
- (3) a temporary power of attorney that generally applies only if an emergency arises.
The power of medical attorney is when an attorney has the power to decide if a person is at the point where they are medically incapable of making their own decisions. A Guardianship may also be used. The guardian, a relative, friend, or heir, can be appointed by the court to handle your affairs and well-being.