A Power of Attorney (POA) is one of the most essential legal tools in your estate planning toolkit. While wills and trusts prepare for the future, a POA is about readiness today—especially in situations where illness, injury, or distance prevents you from managing your own affairs.
At Axis Estate Planning, we guide individuals and families in making thoughtful, proactive decisions. Understanding whether a general or limited Power of Attorney is right for you can help protect your finances and ease the burden on your loved ones.
What Is a Power of Attorney?
A Power of Attorney is a legal document that gives someone you trust—your “agent” or “attorney-in-fact”—the authority to act on your behalf. This may include handling financial transactions, signing documents, or making legal decisions.
In this article, we focus on financial POAs, specifically the difference between general and limited authority.
General vs. Limited Power of Attorney
General Power of Attorney
A general POA provides broad authority. Your agent can manage nearly all financial affairs, including:
- Accessing and managing bank accounts
- Paying bills and handling investments
- Buying or selling property
- Filing taxes or applying for benefits
- Making financial gifts (if authorized)
This option is ideal for long-term support or if you need someone to help manage your day-to-day financial life. It’s commonly used in elder care planning, marital planning, or during extended travel or illness.
However, a general POA grants sweeping authority—so choosing a trustworthy agent and establishing clear boundaries is vital.
Limited (Specific) Power of Attorney
A limited POA grants authority for a specific purpose, time frame, or event. It might be used for:
- Allowing a CPA to speak to the IRS on your behalf
- Empowering a real estate agent to handle a closing
- Enabling a family member to pay bills during your recovery or time abroad
Limited POAs add structure and reassurance, especially when you want to control the scope of financial decisions being made in your name.
Ways to Tailor a Limited POA
- Specific Actions
Define exactly what the agent can do—such as accessing one bank account or signing one legal document. - Time Limits
Set start and end dates to align with known events, like surgery or overseas travel. - Triggering Events (Springing POAs)
These go into effect only when a condition is met—like a formal diagnosis of incapacity—helping you retain full control until needed.
Which One Is Right for You?
There’s no one-size-fits-all answer.
- General POAs provide broad convenience but require deeper trust and oversight.
- Limited POAs offer more control and peace of mind for specific situations.
Your decision depends on your goals, comfort level, and the role your agent will play in your financial life.
Regardless of type, it’s crucial to revisit your POA periodically—especially after major life events like retirement, relocation, marriage, or divorce.
Stay Compliant With Michigan Law
Michigan adopted the Uniform Power of Attorney Act in 2024. This law affects how POAs must be written and what agents can and cannot do. Important updates include:
- Explicit language about gifting
- Enhanced fiduciary responsibilities
- New notice and disclosure requirements
An outdated or non-compliant POA could be rejected just when you need it most. We help ensure your documents reflect Michigan’s current laws—and your personal intentions.
Final Thought
A Power of Attorney is more than paperwork—it’s protection. It’s preparation. It’s peace of mind.
Whether you need full support or just a backup plan for travel or medical care, Axis Estate Planning is here to help you make the best choice for yourself and those you love.
Let’s make sure your plan is ready—when it matters most.
Visit Us: 900 Wilshire Drive, Suite 105, Troy, MI 48084
Call Us: (248) 251-1001
Learn More: www.axisattorneys.com
Axis Estate Planning
Trusted. Thoughtful. Here for what matters most.
A dementia diagnosis is a difficult and emotional time for any family. Symptoms often begin subtly, with behaviors like misplacing items or forgetting appointments, but they progress over time and can significantly impact your loved one’s ability to manage their life. Early planning is key to protecting their interests and ensuring their wishes are honored. Here are important steps to take after a dementia diagnosis.
Consolidate and Secure Financial Documents
One of the first steps after a dementia diagnosis is to gather and organize all financial documents. Create a comprehensive binder that includes essential documents like wills, powers of attorney, health care directives, insurance policies, and bank account information. Keep original documents in a safe place and make copies available to trusted family members. This will make managing your loved one’s affairs much smoother as the disease progresses.
Prevent Financial Fraud
Seniors, especially those with cognitive decline, are often targeted for financial exploitation. Be vigilant for signs of fraud, such as unusual spending, changes in financial habits, or new people showing undue interest in your loved one’s finances. Regularly monitor their accounts and consider setting up alerts to track suspicious activities.
Establish a Durable Power of Attorney
A durable Power of Attorney is essential for managing your loved one’s financial affairs as their condition worsens. This document allows a trusted individual to make financial decisions, manage investments, and conduct banking transactions on their behalf. It’s important to establish this while your loved one still has the mental capacity to make this decision.
Create a Health Care Directive
A Health Care Directive outlines your loved one’s preferences for medical care, long-term care, and end-of-life decisions. It’s crucial to discuss and document these choices early on, while they can still communicate their wishes. This directive should be kept in an easily accessible location and shared with family members and healthcare providers to ensure it is followed in an emergency.
Review and Update the Estate Plan
Reviewing and updating the estate plan is an important step after a dementia diagnosis. This ensures that all documents are up-to-date and reflect your loved one’s current wishes. At Axis Estate Planning, we can help you navigate these changes, ensuring that your loved one’s legacy is preserved and their final wishes are carried out as intended.
