Limited power of attorney– This only applies to specific aspects of your life that you select. For example, you may appoint one individual to make decisions for you regarding your business affairs, and another individual to look after your personal affairs and property.
A “springing” power of attorney– This only takes effect under specific and easily identifiable circumstances that you define, such as two doctors declaring you incapacitated and unable to look after your own affairs.
A “health care power of attorney”– This empowers an individual to make decisions regarding your medical care, including decisions about do-not-resuscitate orders, heroic measures, transplant decisions and when to withdraw from life support.
This individual can be and frequently is different from a person who would benefit by inheriting assets if you pass away. This is similar to a “living will,” which makes your wishes clear.
The person named in your health care power of attorney should be well acquainted with your living will, or your wishes in that regard.
A power of attorney is also a contingency plan if the two of you should be incapacitated in a common accident.
Legal specifics vary from state to state, however, so consult with your own attorney about who to craft a power of attorney for your own specific situation.