Power of Attorney and Guardianship
What is Power of Attorney?
Power of attorney is a legal document that allows an individual (the "principal") to appoint someone else (the "agent" or "attorney-in-fact") to act on their behalf in legal and financial matters. This document is typically used when the principal is unable to handle their own affairs due to illness, disability, or absence.
What is Guardianship?
Guardianship, on the other hand, is a legal arrangement where a court appoints a guardian to make decisions for an individual who is unable to make decisions for themselves. Guardianship is typically used in situations where the individual is incapacitated or disabled.
Key Differences between Power of Attorney and Guardianship
While power of attorney and guardianship may seem similar, there are several key differences that set them apart.
Decision-making Authority
With power of attorney, the agent appointed by the principal has decision-making authority, but the principal retains the right to make decisions as well. With guardianship, however, the guardian has complete decision-making authority.
Court Involvement
Power of attorney is established through a legal document and does not involve the court. Guardianship, on the other hand, is established through a court proceeding.
Duration
Power of attorney can be established for a specific period of time or can be revoked by the principal at any time. Guardianship, however, typically remains in place until the individual is no longer incapacitated or until the court determines that the guardianship is no longer necessary.
Cost
Establishing power of attorney is generally less expensive than establishing guardianship, which involves court proceedings and the appointment of a guardian.
Which is Right for You?
Deciding whether to establish power of attorney or guardianship depends on your specific situation. If you have a trusted individual who can act as your agent and make decisions on your behalf, power of attorney may be the best option. If you are incapacitated or unable to make decisions for yourself, guardianship may be necessary.
Conclusion
In conclusion, power of attorney and guardianship serve different purposes and have distinct differences. Whether you choose to establish power of attorney or guardianship depends on your individual situation. By understanding the differences between these two legal arrangements, you can make an informed decision that best meets your needs.