In the state of Arizona, there is a “springing” power of attorney and a “durable” power of attorney.
- Springing: This power of attorney form only takes effect if you are determined to be mentally incapacitated. At this stage, you are no longer able to manage your finances or make healthcare decisions for yourself. A springing power of attorney has no legal authority over your assets until you have been declared mentally incapacitated. One disadvantage of naming a springing power of attorney is that payment of bills and investment of assets have to be delayed until all requisite documents confirming your mental incapacity have been signed.
- Durable: This takes effect from the moment you sign it. A durable power of attorney provides your designated person the authority to manage, spend, and invest your assets on your behalf. This speeds up the process of paying bills and asset management, but you need to have complete trust in the individual chosen as your durable power of attorney.
It is always best if you hire an experienced attorney to prepare documents for naming a power of attorney. You should go through the process with your attorney to ensure you understand what it entails.
