A power of attorney (POA) is a legal document that grants someone else (the “agent” or “attorney-in-fact”) the authority to act on behalf of another person (the “principal”) in making legal, financial, or medical decisions. The principal authorizes the agent to represent them and make decisions according to the specific powers outlined in the document.
Powers of Attorney can be differentiated by scope, purpose, and durability:
- General Power of Attorney: This type of POA grants broad powers to the agent, allowing them to manage the principal’s financial and legal affairs. It is often used when the principal needs assistance with various matters, such as financial transactions or legal matters, and is valid until the principal revokes it or becomes incapacitated.
- Limited (or Special) Power of Attorney: This type of POA grants the agent specific and limited powers to handle only certain transactions or make decisions within a defined scope. It is often used for a particular purpose, such as selling a property on behalf of the principal. Among limited powers of attorney, one can specify powers of attorney by their purpose. These include Medical Powers of Attorney, which can allow agents to make medical decisions on behalf of the principal if the principal is unable to make them themselves; Financial Powers of Attorney, which can grant the agent the right to manage the principal’s financial affairs, including bank accounts, stocks, and other financial instruments; and Real Estate Powers of Attorney, which can grant the agent the right to manage, rent out, and sometimes sell the principal’s real estate, as well as to make improvements to it. It is worth noting that the exact scope of powers may vary from document to document.
- Durable Power of Attorney: A durable power of attorney remains in effect even if the principal becomes incapacitated or unable to make decisions. In some states, such as New York, Pennsylvania, and North Carolina, all powers of attorney are presumed to be durable. In others, such as California, Florida, and Arizona, the durability of powers of attorney is not presumed, and specific language must be included in the document to indicate that the agent would retain their powers upon the incapacity of the principal. It is often used to ensure that someone can continue to manage the principal’s affairs if they become incapacitated due to illness or disability. Some powers of attorney are known as springing powers of attorney, and only come into effect if the principal is incapacitated or another specifically defined event occurs.
Whatever the scope, purpose, or durability of the power of attorney, the laws of most states require the agent to act in the best interests of the principal. If the agent starts to abuse his powers, state law generally prescribes legal remedies to get the power of attorney revoked.
Creating a power of attorney is an important legal decision that should be done with careful consideration. You must be confident that you can trust your agent and that the agent will not try to use the power of attorney to take advantage of you, especially if you become incapacitated or otherwise unable to have direct control over your property.
A&M Logos International has prepared, notarized, legalized, and translated powers of attorney for over 30 years. While this blogpost focuses primarily on US powers of attorney, we can also prepare powers of attorney for almost any country in the world. In such cases, we will also make sure to obtain the correct legalization (apostille or embassy legalization) of the power of attorney and translate it if necessary. Check out informative webpage on powers of attorney and place your order today. You can also call us at (212) 233-7061 or e-mail us at info@apostille.us if you have any questions.