6 powers of attorney that benefit military members
Powers of attorney can help with several legal issues. But six key powers of attorney benefit military members specifically.
Being away from home is a natural part of military life. Six to 12 months is the length of the average military deployment. In addition, temporary duty orders (TDY) and remote training courses can sidetrack service members from their financial housekeeping.
It makes sense that military members often need backup when it comes to managing their day-to-day finances. Military life in inherently risky and if something were to happen to you, and you could no longer handle financial matters, you would want someone else to be able to fill in for you.
When you're away from home or temporarily unavailable, a power of attorney gives another person the authority to sign documents or act on your behalf.
Six types of powers of attorney can benefit military members and their families. Review what each one means and when you may need one versus the others.
- General power of attorney
- Limited power of attorney
- Durable power of attorney
- Medical power of attorney
- Financial institution power of attorney
- Springing power of attorney
1. General power of attorney
A general power of attorney grants someone broad legal authority to act on your behalf. They're convenient because it doesn't require you to predict every legal scenario in advance.
If you appoint someone to be your general power of attorney, they can file tax returns on your behalf, pay your bills or borrow money in your name.
Choose this person carefully. It should be someone you trust completely. Whoever you give this authority to may have a lot of say-so over your finances — but that's the point of having it in place.
Not only should your general power of attorney be trustworthy, but they should also be capable. Choose someone who is skilled at handling their own finances. If the person you have in mind can't manage their own, you probably don't want to put them in charge of yours.
While a power of attorney is often given to a spouse or a parent, only you know who has your best interests at heart.
2. Limited power of attorney
If you don't feel comfortable granting someone a general power of attorney — or if you don't need to grant someone a general power of attorney — you can give them a limited power of attorney. It's also called a special power of attorney.
A limited, or special, power of attorney allows the person you choose to perform a specific transaction on your behalf. For example, you can give someone the authority to pay your bills or represent you if you're selling your home while you're deployed or TDY.
Because this type of power of attorney is limited and has a narrow scope, you'll need to secure a new one for every new type of business relationship.
3. Durable power of attorney
You may have heard the phrase regular, or nondurable power of attorney. Under regular powers of attorney, the named agent's authority ends if you become incapacitated.
On the other hand, a durable power of attorney ensures your named agent can continue to act on your behalf even if you become incapacitated or mentally incompetent. You'll also eliminate the need for someone to go to court to establish a guardianship to serve on your behalf.
A durable power of attorney is especially important due to the danger involved in the military lifestyle. Service members are exposed to risk, and if you are injured and unable to manage your finances, you want the person you put in charge to be able to continue to manage them until you get better.
Make sure to specify a durable power of attorney because if you don't, the court may not appoint the person you would have chosen.
A durable power of attorney is for financial matters and doesn't grant someone the ability to make medical decisions on your behalf. For that, you'll need a medical power of attorney.
4. Medical power of attorney
A medical power of attorney is used to designate a trusted individual as your health care agent. It empowers them to interpret your wishes and make medical decisions on your behalf.
When you pick a medical power of attorney, think about who can maintain a level head during a medical emergency. This might be a different person than who you ask to manage your finances.
Be sure to communicate your health care preferences with this person so they can act in accordance with your wishes.
When you name your medical power of attorney, work with an attorney to draft legal documents such as a living will that spells out your medical treatment wishes. This document includes instructions should you become incapacitated, including "do not resuscitate (DNR)” or “do not intubate (DNI)" orders.See note1
5. Financial institution power of attorney
Many financial institutions require their own power of attorney for someone to act on your behalf with them. This is an important step in ensuring your finances can be fully managed in your absence.
Before you leave, check with all of your financial institutions to verify that they'll accept a power of attorney outside of their organization. Ask them what additional forms, if any, they require.
The goal of any power of attorney is to prevent the disruption a TDY or deployment can cause to other areas of your life. From your health to your finances, finding someone who'll always act in your best interests and giving them power to manage what you can't while you're away is a key part of being in the military.
6. Springing power of attorney
Powers of attorney like the ones we've mentioned are effective as soon as they're signed. But what if you don't want to grant someone power immediately? What if you want to wait until a specific event occurs? You can put a springing power of attorney into place on a specified date or under a specified condition.
People commonly use it to be prepared in disability or mental incompetence cases. They can also be used for other specific events. Maybe you're planning to climb Mount Everest and you want a plan in place if you don't return in 60 days.
One downfall with springing powers of attorney is the time it can take for them to be enacted. It can take weeks, maybe months, for a physician to sign off on the necessary documentation to have you declared incapable of handling your finances. During this time, your finances are not being handled, and bills keep piling up.
Regardless of the type of power of attorney you decide is right for you and your family, be sure to communicate your wishes with that person. You want both parties to know what to expect, so your power of attorney has what they need, and you can feel confident you've done all you can to secure your finances.