3.5.1. Types of Powers of Attorney
• General—broad and substantial powers, includes finances, contracts, tax filing, employment, claims and litigation, personal and family maintenance, business operations, and the right to delegate. Unless specifically stated in the power of attorney document, gifting is not permitted.
• Limited—specific powers, authorizing the agent to do something specific, like sell a house or collect a debt, or buy/sell a stock.
• Trading authority—limited power of attorney that financial firms may offer customers. “Limited trading authority” generally permits buying and selling, but not withdrawals or redemptions. “Full trading authority” permits buying, selling, redemption, and withdrawals.
• Financial power of attorney—as its name indicates, this power of attorney covers financial decisions only. Authority can be as broad or narrow as the grantor wishes.
• Child care power of attorney—if a child spends extended periods with someone other than the parent, this authorization may be necessary. Schools and doctors may request it.
• Springing power of attorney—a power of attorney that “springs” into effect after a trigger event