A power of attorney is a commonly used legal device. You could use a power of attorney if you wanted to give another person the power to act on your behalf in a legally binding manner. Learn more about the general power of attorney in Indiana and limited power of attorney in Indiana in this presentation.

1. What Is the Difference Between a General and a Limited Power of Attorney? www.FrankKraft.com 1
There are many different facets to consider when you are engaged in your estate
planning efforts. Transferring assets is not always as simple as an exercise in pie
slicing.
You should carefully consider the impact that a direct inheritance can have on
each of your loved ones. If you act in a discerning manner, you can provide for
each person that you love in the optimal fashion.
With this in mind, we will look at the value of special needs trusts in this paper.
MEDICAID COVERAGE
You have probably heard of the Medicaid program. This is a health insurance
“A power of attorney is a commonly used legal device.
You could use a power of attorney if you wanted to give
another person the power to act on your behalf in a legally
binding manner.”
WHAT IS THE DIFFERENCE
BETWEEN A GENERAL AND
A LIMITED POWER OF
ATTORNEY?
PAUL A. KRAFT
Indiana Estate Planning Attorney

2. What Is the Difference Between a General and a Limited Power of Attorney? www.FrankKraft.com 2
This can be a rather versatile tool that can be used under various different
circumstances. The versatility comes from the fact that there are different types
of powers of attorney. One distinction is the limited power of attorney versus the
general power of attorney.
GENERAL POWER OF ATTORNEY
For one reason or another, you may be in a position where you cannot take care
of your affairs in person. Under these circumstances, you may need someone to
act for you in a comprehensive manner. If you are in this situation, you could
grant a general power of attorney.

3. What Is the Difference Between a General and a Limited Power of Attorney? www.FrankKraft.com 3
The person that you would name to act on your behalf is called the agent or
attorney-in-fact. Don't be fooled by the term attorney-in-fact. Any adult who is
mentally competent can act as the attorney-in-fact. You do not have to name a
legal professional to act as your agent.
We should point out the fact that the agent must also be willing to assume the
role. You cannot legally compel someone to act as an agent under a power of
attorney.
LIMITED
POWER OF
ATTORNEY
If you want someone
to act on your behalf,
but you do not want to
grant a comprehensive
level of power, you
could execute a limited
power of attorney. The
limitations that you
include would be
entirely up to you.

4. What Is the Difference Between a General and a Limited Power of Attorney? www.FrankKraft.com 4
For example, if you are going to be out of the country, and you are buying a
vacation house in Hawaii, you could give your son the power to sign the real
estate documents at closing. The power could be limited to this single
transaction.
It would also be possible to give someone the power to act on your behalf in a
comprehensive manner for a limited period of time.
These are just a couple of examples, but the point is that you have broad
latitude with regard to the extent of the power that you want to grant to the
agent.

5. What Is the Difference Between a General and a Limited Power of Attorney? www.FrankKraft.com 5
INCAPACITY PLANNING
We are an estate planning law firm, and we also specialize in the elder law
arena. In our area of the law, incapacity planning is very important, because
many elders become unable to handle their own affairs eventually.
If you become incapacitated without taking any steps to protect yourself,
interested parties could petition the state to convene a guardianship hearing.
Ultimately, the state could appoint a representative who would be legally
empowered to handle your affairs.
Most people would rather keep the matter out of the hands of the state and
choose their own decision-makers. You could do this through the execution of

6. What Is the Difference Between a General and a Limited Power of Attorney? www.FrankKraft.com 6
durable powers of attorney. The durable designation would allow the powers to
remain in effect even if you become incapacitated.
A durable power of attorney for health care could be executed to name someone
to make medical decisions on your behalf. You may want someone else to handle
your financial affairs in the event of your incapacitation. To facilitate this, you
could also include a durable financial power of attorney.
If you put these documents in place, there would be no need for a guardianship,
and representatives that you personally appointed would act as your agents if
you were to become incapacitated at some point in time.
SUMMARY
A power of attorney can be used to
name someone to act on your behalf
in a legally binding fashion.
With a general power of attorney,
you would be giving sweeping
powers to the agent. You could
alternately use a limited power of
attorney to allow an agent to act on
your behalf for limited purposes, or
for a prescribed period of time.
Durable powers of attorney are often
utilized to account for latter life
incapacitation. Many elders do
become unable to handle their own
affairs at some point in time, so
incapacity planning is quite
important.
If you would like to discuss
incapacity planning with a legal professional, schedule a consultation with a
licensed estate planning attorney.

7. What Is the Difference Between a General and a Limited Power of Attorney? www.FrankKraft.com 7
REFERENCES
American Bar Association
http://www.americanbar.org/groups/law_aging/resources/health_care_decision_
making/consumer_s_toolkit_for_health_care_advance_planning.html
The Alzheimer's Association
http:alz.org
Caring.com
http://www.caring.com/articles/adult-guardianship

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About the Author
Paul A. Kraft
Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms
in Indiana in the area of estate planning as well as business and tax planning.
Mr. Kraft assists clients primarily in the areas of estate
planning and administration, Medicaid planning, federal and
state taxation, real estate and corporate law, bringing the
added perspective of an accounting background to his work.
In addition to his practice, Mr. Kraft has lectured extensively
in the areas of living trust planning, Medicaid planning, and
presenting public and private seminars on the importance of
proper estate planning. He has also authored various articles
on estate planning and is a contributing author of LEGACY:
Plan, Protect, and Preserve Your Estate–Practical Answers
from America’s Foremost Estate Planning Attorneys.
Mr. Kraft is a co-founder of the Indiana Network of Estate
Planning Professionals, a charter member of the AmericanAcademy of Estate Planning
Attorneys and a founding member of the National Network of Estate Planning Attorneys. He is
also a member of the Indianapolis Bar Association, including the Taxation, Business Law and
Estate Planning sections; the Indiana State Bar Association, including the section on Taxation
Law; the Indiana CPA Society; and the Estate Planning Council of Indianapolis. Mr. Kraft is
admitted to practice law before the Supreme Court of Indiana, U.S. District Courts, and U.S.
Tax Court.
Frank & Kraft
A Professional Corporation
Attorneys at Law
www.FrankKraft.com
135 N. Pennsylvania Street Suite 1100
Indianapolis, IN46204-2485
Phone: (317) 684-1100
Fax: (317) 684-6111