Are there different types of power of attorney?

There are several types of power of attorney for finances:

• General power of attorney. This document gives the agent authority in all situations (except for those specifically excluded in the document), including handling bank and investment transactions, accessing safe deposit boxes, buying and selling property, entering into contracts, filing tax returns, and managing government benefits. In some states, a general power of attorney could include creating or amending trusts during the senior's lifetime, or transferring assets into trusts. A general power of attorney lasts until a date specified in the document or, if there is no stated ending date, until the principal -- the person -- dies or revokes the document. A general power of attorney also ends when the person becomes incapacitated, unless the document is also designated as "durable" (see below). A general power of attorney does not, however, mean that the person gives up authority over his own affairs. As long as he is mentally competent, he keeps authority over all his own financial decisions, with the agent acting only as an "assistant" financial manager.
• Specific power of attorney. This document gives an agent authority only in specific situations named in the document, such as operating a business, making gifts or donations, collecting debts, or closing the sale of a home and distributing the proceeds. The specific power of attorney remains in effect until a particular date stated in the document, until the named transactions are completed, or until the principal becomes incapacitated, dies, or revokes the document.
• Durable power of attorney. This is the type of power of attorney that remains in effect and permits the designated agent to take care of all the person's financial affairs if and when he becomes incapacitated, either temporarily or permanently. If the person doesn't specifically designate a power of attorney as "durable," it will automatically end if he becomes incapacitated.
• Springing power of attorney. This type of power of attorney only becomes effective at a future time or with a future event, such as when the person travels outside the country or becomes incapacitated. It used to be common for durable powers of attorney to be written as "springing" into effect only if and when a doctor -- or more than one doctor -- certified that the principal had become mentally incapacitated. However, the process of getting a doctor to certify that someone is incapacitated has become difficult, even when the incapacity is obvious. Also, "mentally incapacitated" is medically and legally vague, so doctors are sometimes reluctant to make that determination. It can even be difficult to get hold of someone's medical records or to have a doctor discuss his condition. For all these reasons, it's not usually recommended that a durable power of attorney be springing.