Introduction
A power of attorney (abbreviated POA) is an important legal document that allows an individual to delegate their authority to make decisions and take legal actions to someone else. This transfer of power is also known as “attorney-in-fact” or “agent,” and is often used when the creator of the POA (the “principal”) isn’t able to, for whatever reason, take care of their own personal or business affairs.
Types of Power of Attorney
There are several different kinds of POAs, each applicable in different scenarios. Limited power of attorney (LPOA) is most commonly used when the principal is going to be unavailable, either permanently or temporarily, and still wants to have some level of control over their matters. This lets the principal authorize their agent to make decisions on their behalf without all the authority granted under a general POA. Special POAs are used to grant the agent a one-time-only power to act on behalf of the principal for a specific purpose. Durable POAs are similar to general POAs, except that they remain in effect even if the principal becomes incapacitated.
Creating a Power of Attorney
When creating a POA, the principal must never forget that the person to whom they grant their power will act on their behalf as if they were the principal, and thus must choose their attorney with the utmost care.
Before signing the document, the principal should discuss what matters they want covered with the attorney, and make sure they understand the document fully. They should also take the time to meet with their attorney in person to ensure that their attorney understands their particular situation and the matters they want their attorney to handle.
Contents of the Document
The POA document itself should include the names of the principal and attorney, the date the document is executed, and a clear definition of the powers granted to the attorney. The document should also include a clause that states the POA is revocable, meaning the principal can cancel or terminate the POA at any time. Finally, the document should contain a statement giving the attorney the authority to act on the principal’s behalf and execute any decisions on their behalf.
Conclusion
Power of attorney documents can be an extremely useful tool for individuals who are unavailable or otherwise unable to make their own decisions. They can be used for a variety of purposes, from business matters to medical decisions, and should be created carefully and thoughtfully by the principal to ensure their best interests are protected.