What is power of attorney?
What types of POA are there?
What is general power of attorney (GPOA)?
What is limited power of attorney (LPOA)?
What is special power of attorney?
What is durable power of attorney?
A power of attorney (POA), also referred to as a letter of attorney, is a written authorization that grants a person or entity to act on behalf of another. This authorization is between a “principal” and an “attorney in fact.”
– the Principal authorizes the “attorney in fact” to act on his/her behalf (“gives powers of attorney”)
– the “attorney in fact” can be a person or an entity and is not necessarily an actual attorney/lawyer. However, the “attorney in fact” is a fiduciary of the principal and acts as an agent.
Powers of attorney can be general, limited or special.
This allows an Agent (“attorney in fact”) to take legal actions on behalf of the Principal, can open or close bank accounts in the Principal’s name, buy or sell stock, etc.
The powers that a Principal grants can be tailored by placing restrictions in the general power of attorney. For example, a property management power of attorney can allow the Agent to pick and sign tenants to the property and handle transaction documents directly, but keep certain functions exclusive to the Principal – such as selling property or a change of beneficiary.
This is a form of LPOA that applies to very specific circumstances and tasks. A Principal may create more than one, each to a different Agent per task.
Generally, a POA is no longer valid in the event that the Principal is in any way incapacitated. However, if it is specified that the POA is durable, the Agent will continue to act on behalf of the Principal even after that.
There are two kinds of durable POAs:
– Financial, which allows the agent to manage the Principal’s financial affairs
– Health, which allows the Agent to make medical decisions for the Principal
|Power of attorney|
|Real Estate Agent|
|Statute of Limitations|