In estate planning, what type of agency is being practiced?

In estate planning, the appropriate type of agency being practiced is universal agency. Universal agency refers to a situation where an agent has the authority to act on behalf of the principal in all matters pertaining to the principal's affairs, not limited to just one specific area like real estate or financial transactions.

In the context of estate planning, a universal agent may be granted broad powers to manage and plan for the distribution of an individual's assets, make decisions regarding their healthcare, and handle various legal and financial matters as needed. This level of authority is essential in estate planning because it allows the agent to act comprehensively and make informed decisions that align with the principal's overall wishes.

Understanding universal agency is crucial, as it encompasses a wide range of responsibilities and offers flexibility in managing the principal's affairs, particularly in ensuring that their wishes are respected and executed accurately. When preparing an estate plan, having a representative with universal agency can streamline the process and help ensure all aspects of the estate are effectively addressed.