An Experienced Florida Estate Planning Attorney Explains the Difference Between a Durable Power of Attorney and a Limited Power of Attorney

Do you ever think about what may happen if you become incapacitated and lose the ability to speak for yourself as a result of an illness or accident? How will you be able to communicate and let your loved ones know your wishes when it comes to finances or your care? No one wants to think about the unexpected happening.

Fortunately, there are durable and limited power of attorney documents you can put in place as part of your estate plan to give you peace of mind should something unexpected happen to you. While they share some similarities, there is a key difference between a Durable Power of Attorney and a Limited Power of Attorney.

In this blog post, our estate planning attorney team will discuss this key difference to help you decide if one or both is right for you. At Denise Jomarron Legal Group, we help clients avoid guardianship through powers of attorney and other estate planning tools. Call us at (305) 402-4494 to schedule your complimentary 20-minute consultation. We are here to help you and your loved ones through every step of the estate planning process.

“Principal” and “Agent” – Terms You Need to Know

The terms “principal” and “agent” have specific meanings in Florida power of attorney documents. The principal is the individual who grants authority to another person, known as the agent, to act on their behalf. In most cases, the principal grants the agent authority to make financial decisions or take actions relating to legal matters.

The agent is obligated to act in the principal's best interests and follow any instructions provided by the principal. If the agent fails to do so, they can be held liable for any losses the principal incurs.

What is a Power of Attorney?

According to the Florida Bar, a power of attorney is a legal document delegating authority from one person to another. In the document, the principal grants their designated agent the right to act on their behalf. What authority is granted depends on the specific language of the power of attorney. The principal may make the power of attorney very broad or may limit it to certain specific acts.

A power of attorney is one of the cornerstone documents inside your Florida estate plan that can give you peace of mind if you cannot speak up for yourself since it allows you to choose your agent who shall act to protect your interests. Selecting the appropriate agent in a power of attorney is vital for executing your intentions.

Selecting an Agent

You can choose any competent person 18 years or older to serve as your agent. However, it is crucial to select someone you trust to make decisions based on your wishes and in your best interest. Additionally, it is wise to include successor agents when creating the document.

A successor agent can take over the duties if the predecessor agent resigns, passes away, or becomes incapacitated. For example, the agent might decline to serve when the time comes. If that happens, the successor agent can take on the duties. One also has the option to add co-agents that can work in tandem when managing your financial affairs.

An experienced estate planning lawyer can help determine if you need a durable or limited power of attorney. Implementing the wrong power of attorney could leave your agent with inadequate or too much control.

Durable Power of Attorney

First, let’s discuss a Durable Power of Attorney. A Florida Durable Power of Attorney authorizes an agent of your choosing to handle your financial and legal affairs if you become incapacitated. Your Florida estate planning attorney can help you with your estate planning goals to determine which powers you wish to grant to your agent. Your attorney can also include restrictions so your agent only makes decisions within the scope of the document.

This is a significant amount of responsibility to give someone else. You must select this person carefully by considering whether you can trust them to act in your best interests. The Durable Power of Attorney stays durable, or effective, from the initial signing until it is revoked or you pass away. An important point is that it remains effective even if one becomes incapacitated.

Limited Power of Attorney

In contrast, a Limited Power of Attorney gives the agent you designate power for a specific purpose and timeframe. The document conveying the limited power of attorney specifically states the nature of the transaction the agent can complete. An example would be designating an agent to sell property on your behalf in another state. Once that is done, their power ends.

Things a Power of Attorney Agent Cannot Do

There are a few things a power of attorney agent cannot do regardless of the terms of your document, including:

• Changing or creating your Last Will and Testament;
• Making decisions on your behalf after you’ve passed away (unless you have also appointed them as personal representative of your estate);
• Transferring the power of attorney agent role to someone else.

Denise Jomarron Legal Group: Your Experienced Florida Estate Planning Attorney

In addition to assisting you with your power of attorney needs, at Denise Jomarron Legal Group, we help individuals and families gain peace of mind by working with them to make their custom estate plans to carry out their wishes. Call to schedule your complimentary 20-minute consultation with an estate planning attorney at (305) 402-4494 or complete our online form.

Copyright © 2022. Denise Jomarron Legal Group. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

Denise Jomarron Legal Group
4300 Biscayne Blvd., Suite 305
Miami, FL 33137-3255
(305) 402-4494
https://djlegalgroup.com