You may find yourself considering whether a guardianship or power of attorney suits your needs better as you or your relatives age and assistance managing finances, healthcare and other daily tasks becomes necessary. Understanding what the best arrangement for your circumstance can often be challenging, and it is important to become familiar with the key differences between guardianships and powers of attorney.
In essence, a guardianship can be ordered by the court to appoint an individual, the guardian, to manage the financial and personal affairs of a minor or an adult who lacks the ability to do so. This arrangement is often more intrusive as it involves a greater surrender of personal rights, but it also adds a layer of court supervision.
On the other hand, a power of attorney (POA) is a legal document that allows someone, known as the principal, to designate another individual (the agent or attorney-in-fact) to manage their affairs. A principal can retain control over their affairs by drafting conditions and limitations into their POA. Another type of POA, durable power of attorney, remains valid even if the principal loses the capacity to make decisions.
It is wise to take into account the responsibility bestowed upon the person being granted power of attorney or guardianship. As such, consider the nature of the duties involved, as well as the values, integrity and abilities of the person entrusted with the role. Seeking legal advice is recommended to better understand the implications of each option.
For a more comprehensive take on this topic, consider reading this insightful article on JD Supra, penned by Stark & Stark.