A power of attorney (POA) is a legal document in which you designate an agent or another person to sign documents on your behalf. POAs can be categorized into two types:
Immediate POA: Effective as soon as it is signed, allowing the designated agent to execute documents on your behalf immediately.
Durable POA: Remains dormant until a specific event, usually incapacity, triggers its activation. The determination of incapacity can be based on a physician's letter, multiple doctors' letters, or a competency panel comprising friends or other medical professionals.