What’s the difference between a guardianship and a power of attorney? In this video, New Jersey elder law and guardianship attorney Mark R. Friedman answers that question.
Key differences are that a power of attorney agent is appointed by the principal, the person signing the document, while a guardian is appointed by a court. Moreover, with a power of attorney, the principal has power over the agent, like an employer over an employee. Whereas with a guardianship, the guardian has power over the ward, like a parent over a child.
Another key difference is that you have to have capacity – the ability to understand important matters, manage your affairs and safely make important decisions – to be able to make a power of attorney. Whereas with a guardianship, you are asking the court to find that the person already lacks capacity.
In general, if someone is okay now but may need help in the future managing their finances, a power of attorney is often a good choice. By contrast, if someone can’t manage their affairs now, or is making choices that are harmful to them, a guardianship is typically the way to go.
For more information on guardianship or powers of attorney, please call or email us to discuss your circumstances.