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A durable financial power of attorney is probably the most common POA. "Durable" merely means that it's effective even after the principal (the one granting POA authority to another) becomes unable to handle their own affairs. You definitely don't want a POA that expires when someone is deemed incompetent to handle their affairs!

There is a form of POA called a springing POA - it only becomes active when an event described by the principal occurs. At work (financial/insurance services), I usually see something like "not effective until two physicians deem the principal unable to handle their own affairs" or a variation like that regarding their competency.

Another form you may see is a limited POA - it's only good for either a certain duration or for certain kinds of transactions. I see this most often at banks or brokerages, etc. to allow someone to handle fund exchanges or the bank wants it for their own protection.

If you are in the process of obtaining POAs for finances and health (or combining both into one document), a durable POA would be the easiest to use. A limited POA isn't going to be of much help. A springing POA can be a pain in gathering the required documentation to show that it is now in effect.

If you have resources, you may want to consult with an elder-law attorney as to drafting a quality POA that includes all the necessary authority for your particular situation. In my job (legal), today alone I reviewed 15 POAs, and it's never fun to tell a customer that they can't change ownership of a policy for Medicaid or change a beneficiary after the primary beneficiary passed away because the POA didn't contain the terms as required by law. Worse is saying we can't even record the POA because it didn't meet the requirements listed in each state's laws.

I highly recommend finding an elder-law attorney or a low cost/no cost clinic to discuss your needs. While many states have a statutory POA that you can obtain for free, if you don't know what powers you need to have in the document, you could be stuck when you need to make a major transaction.

Best wishes!
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