A power of attorney is the name signifying a one-page legal document that gives an attorney power, nature of which, specified in the paper, to do certain acts written in the said document on behalf of the person authorizing an attorney. Power of attorney does not have any specified format under the law but must be written in a clear and not obscure language. It is better to get control of attorney drafted from some legal expert to avoid jeopardizing your interest.
Other names that may be used for the legal term Power of Attorney are as follows.
• Permanent Power of Attorney
• General Power of Attorney
• Power of Attorney or P.O.A.
• Financial Power of Attorney
• Special Power of Attorney
What is a Power of Attorney?
A form of power of attorney is a legal document executed for the process of allowing to appoint someone else to act on one’s behalf if one asks someone to make short-term or long-term decisions for oneself’s. In the form of a power of attorney, the person authorizing another person is the “Principal”, and a person being authorized is called an “agent” and/or “pleader” and/or “attorney” and/or “advocate” and /or “attorney-in-fact”.
What Authority Can You Really Give to your Lawyer through a P.O.A.?
Power of attorney allows you to choose what your personal representative or de facto attorney will be responsible for by specifying the power of attorney number. The powers you can give to your attorney notably include but are not limited to the following:
- Your attorney can get engaged in Buying, selling, renting or managing residential, commercial and/or personal real estate on your behalf by executed P.O.A.
- Your attorney can get engaged in Investing, trading and managing every business transaction and decision and handle any claims or litigation on your behalf by executed P.O.A.
- Your attorney can supervise banking, tax, government and pension transactions and decisions to retain trusts and inheritance. The financial capability being authored to your attorney also allows your agent to monitor individual insurance policies and continue to donate to charity on your behalf by executed P.O.A.
- Your attorney can get engaged in buying gifts, hiring professionals, and selling or exchanging any personal property on your behalf by executed P.O.A.
- You can also grant general jurisdiction to your attorney relating to the authority to make decisions that you might make if you were in person.
Types of power of attorney forms.
General: A General Power of Attorney allows your agent to manage all of your financial affairs and assets. This kind of POA gives an attorney general authority.
Specific: A unique form of power of attorney that limits your agent’s responsibility for certain types of decisions. For example, you can allow someone to make only business decisions.
Ordinary: A general power of attorney is only valid as long as you, as a principal, have the power to make decisions. This type of power of attorney will expire if you become incapacitated.
Durable: A resilient power of attorney is when an authority given under P.O.A. continues even if you, the principal, somehow become incapacitated.
Circumstances in which drafting of power of attorney may be considered.
You should think of getting your power of attorney drafted if:
- You travel abroad frequently.
- You work in a hazardous work environment.
- You have been detected with a critical illness.
- You have a business or property that you want to be maintained in your absence.
- You have children who need care if you become disabled.
- You want a specific person to be in charge of your business.
- You have rules about how you conduct your business, property or life, and you want them followed.
- You are approaching old age and want to appoint someone to represent you.