Representation Agreements vs. Power of Attorney

When it comes to estate planning and wills, two documents that should always be included in your planning package are a power of attorney and a representation agreement. While your will outlines what will happen after your passing, these documents will be used should you become incapacitated or otherwise unable to make decisions on your own while you are alive. As experts in wills, estates, and trust law, the team at Linley Welwood knows how impactful a power of attorney and a representation agreement can be for the estate planning process. That is why we have compiled some information to help you understand the differences between representation agreements vs. power of attorney and why both are important.

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What is the Difference Between a Representation Agreement and Power of Attorney?

The primary difference between representation agreements and power of attorney is the permissions they grant a representative. Both documents allow an individual to make decisions on your behalf should you become unavailable or incapacitated, though the types of decisions an individual can make will differ depending on the documentation that they have. Regardless of the document, it is important to choose someone you can trust to ensure that your wishes are accurately carried out on your behalf.

What is a Representation Agreement?

A representation agreement will allow your representative to make decisions regarding your health and personal care. These documents are useful in situations involving ailing family members, aging parents or loved ones, and individuals facing a serious medical procedure. Representation agreements are important because they ensure that decisions can be made in your best interest—and according to your preferences—when you are unable to express those decisions yourself.

What is Power of Attorney?

Power of attorney refers to the act of appointing an individual to handle your legal and financial affairs. It is valuable to have a power of attorney set in place in case something happens while you are travelling out of the country or if you need somebody to handle banking for you while you are otherwise occupied. It is especially important to have a power of attorney established if you own a business with employees, own property have multiple dependents.

To learn more about representation agreements, power of attorney, or other areas of wills and estate law, get in touch with the team at Linley Welwood. We can be reached through our online contact form and will be happy to answer any questions you may have regarding our services.