What's it all mean?
Use these handy definitions to confidently understand your options and choices when creating a Durable Power of Attorney for Finances.
Common Terms
Principal
A Power of Attorney is a legal document. Powers of Attorney generally come in two major categories: a Power of Attorney for Healthcare and a Power of Attorney for Finances.
BluBinder's Durable Power of Attorney for Finances only focuses on financial matters, generally activities related to accounts in places like banks, credit unions, credit card companies, brokerage accounts, retirement plans, insurance companies and a few other specific areas. This Power of Attorney is focused on enabling trusted person to help someone manage finances if that need arises, including an emergency situation. BluBinder's Power of Attorney does NOT provide an agent the power to manage or sell real estate.
BluBinder's Power of Attorney is called a Durable Power of Attorney, meaning it goes into legal effect and stays in effect generally until the principal revokes it or passes away. A Durable Power of Attorney does NOT give the agent powers for a specific time period; the agent's powers would remain in effect UNTIL the principal, and only the principal or a court, revoke those powers or the principal passes away.
BluBinder's Durable Power of Attorney does NOT cover healthcare.
Our document is officially called a Durable Power of Attorney for Finances, but you may sometimes see it referenced in fewer words throughout our website and products.
Agent
The agent is the person who the principal is asking to act on their behalf. Although no one is overseeing the agent, the agent is legally obligated to act in the principal's best interests.
Principal
A Power of Attorney is a legal document. Powers of Attorney generally come in two major categories: a Power of Attorney for Healthcare and a Power of Attorney for Finances.
BluBinder's Durable Power of Attorney for Finances only focuses on financial matters, generally activities related to accounts in places like banks, credit unions, credit card companies, brokerage accounts, retirement plans, insurance companies and a few other specific areas. This Power of Attorney is focused on enabling trusted person to help someone manage finances if that need arises, including an emergency situation. BluBinder's Power of Attorney does NOT provide an agent the power to manage or sell real estate.
BluBinder's Power of Attorney is called a Durable Power of Attorney, meaning it goes into legal effect and stays in effect generally until the principal revokes it or passes away. A Durable Power of Attorney does NOT give the agent powers for a specific time period; the agent's powers would remain in effect UNTIL the principal, and only the principal or a court, revoke those powers or the principal passes away.
BluBinder's Durable Power of Attorney does NOT cover healthcare.
Our document is officially called a Durable Power of Attorney for Finances, but you may sometimes see it referenced in fewer words throughout our website and products.