Power of attorney
Power of attorney (POA) is a legal document that allows an individual (the principal) to appoint another person (the agent or attorney-in-fact) to manage their affairs if they are unable to do so. This can include making decisions related to finances, property, and medical care.
Types of Power of Attorney[edit | edit source]
There are several types of power of attorney, each with its own specific purpose and limitations.
- General Power of Attorney: This type of POA gives the agent broad powers to act on behalf of the principal. This can include managing financial and business transactions, buying life insurance, settling claims, operating business interests, making gifts, and employing professional help.
- Durable Power of Attorney: A durable POA remains in effect even if the principal becomes mentally incapacitated. Unless the document includes specific limitations, the agent can make decisions about the principal's property, finances, and medical care.
- Special or Limited Power of Attorney: This type of POA gives the agent specific powers for a limited period of time. For example, the principal might use a special POA when they can't handle certain affairs due to other commitments or health reasons.
- Health Care Power of Attorney: This type of POA allows the agent to make health care decisions for the principal if they are unable to do so. This might include decisions about medical treatment, care providers, and end-of-life decisions.
Creating a Power of Attorney[edit | edit source]
To create a power of attorney, the principal must be an adult and mentally competent. The document must clearly state that the principal understands the powers being granted to the agent, and it must be signed and notarized. Some states also require witnesses.
Revoking a Power of Attorney[edit | edit source]
A power of attorney can be revoked at any time as long as the principal is mentally competent. The revocation should be done in writing, and it should be given to the agent and any institutions or parties that have a copy of the POA.
See Also[edit | edit source]
References[edit | edit source]
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