Power of Attorney (POA)
A Power of Attorney lets one person (the “principal”) give another (the “agent” or “attorney-in-fact”) the authority to act on their behalf. It’s a useful tool for managing finances, healthcare, and personal matters when the principal cannot do so themselves, or when the principal simply wants another person to handle the matter for them.
Types of Power of Attorney in Utah:
- General POA – Grants broad authority over financial and legal matters.
- Limited POA – Restricts authority to specific tasks or transactions.
- Durable POA – Stays valid even if the principal becomes incapacitated.
- Medical POA – Gives the agent power to make healthcare decisions.
- Springing POA – Becomes active only under certain conditions, such as incapacity.
Guardianship
Guardianship is a court process where a judge appoints a guardian to make decisions for someone unable to manage their affairs. It’s necessary when a person lacks a valid POA and can no longer make responsible choices due to illness, disability, or age.
Types of Guardianship in Utah:
- Full Guardianship – Grants control over personal and financial matters.
- Limited Guardianship – Assigns only specific decision-making powers.
- Emergency Guardianship – Appointed quickly when immediate action is required.
Key Differences Between POA and Guardianship
A Power of Attorney is voluntary. The principal chooses their agent, and the arrangement can take effect immediately or under specific conditions. A POA does not require court involvement, making it faster, cheaper, and easier to manage. The principal remains in control unless they become incapacitated, and they can revoke the POA at any time if they are still competent.
Guardianship, on the other hand, is court-ordered. A judge appoints a guardian if someone cannot make their own decisions and has no POA. The process takes time, involves legal fees, and requires ongoing court oversight. Once a guardian is in place, the protected person loses decision-making authority, and only a court can remove the guardianship.
Which Option Is Right for You?
A Power of Attorney is the better choice for those who want to plan ahead and control who manages their affairs. It’s simpler, less expensive, and avoids court involvement. However, if no POA exists and a person becomes incapacitated, Guardianship may be the only way to ensure their affairs are handled properly.
Conclusion
Both POA and Guardianship allow others to make decisions on someone’s behalf, but POA offers more flexibility and control. Setting up a POA early can prevent the need for Guardianship and make life easier for loved ones. If you need help deciding the best option, consult an experienced estate planning attorney.