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.
