Power of Attorney (POA) is a legal document that gives another person the right to act on behalf of the principal. With POA, the other person (agent) receives all the rights to take legal decisions in the principal’s best interests regarding finances and property. When the principal can’t show up to sign on the legal documents due to illness, disability, or any other reason.
Several issues can put, such as the principal’s death or if the principal himself revokes it. Another factor could be the invalidation from a court or when the agent cannot execute the outlined responsibilities as per the principal’s expectations or requirements.
This article will share with you the various types of POAs and how each POA works.
Types of Power of Attorneys
There are various types of POAs that fall under either the general power of attorney.
General Power of Attorney
Under a general POA, an agent can perform more than one job on behalf of the principal, including overseeing and handling bank accounts, selling property and assets like stocks, signing checks, and filing taxes. All the actions performed by the agent are supposed to bind the principal as if he conducted these actions.
Trust is the critical factor that plays a vital role when choosing a power of attorney.
Limited Power of Attorney
Unlike the GPOA, an agent can perform specific functions under a limited as described in the agreement. It restricts the agent’s authority to a particular sphere, and he cannot perform any action other than the clearly stated functionalities.
Almost everyone finds the necessity of having a power of attorney at some point in their lives.
Durable Power of Attorney (DPOA)
DPOA can carry out specific legal and financial matters in case the principal becomes mentally incapacitated. The range of under a durable power of is huge. This document can authorize the agent to do very powerful things, these should be discussed with your estate planning or elder law attorney.
Did you Know?
Some of the key powers that cannot be delegated via a POA entail;
- Contract a marriage
- Cast a vote
Key Take-Aways
Signing a power of attorney is similar to signing a blank check. So, make sure to choose the agent wisely and understand the process and law to avoid unwanted consequences. A little mistake regarding the Power can translate into a catastrophe later. Failing to include necessary provisions is also a catastrophe waiting to happen.
If you are looking for a seasoned attorney for will and power of attorney, visit our website Kania Elder Law and get yourself connected with our attorney. Our attorney can assist you with all your queries and concerns and help you execute the whole process safely and wisely.