by law what is the purpose of power of attorney

A power of attorney is a legal document that gives one person the power to act for another person. The person who receives the authority is the agent or attorney-in-fact while the subject of the POA

is the principal.

Full Answer

What Is Power of Attorney?

Power of attorney (POA) is a legal authorization that gives a designated person, termed the agent or attorney-in-fact, the power to act for another person, known as the principal. The agent may be given broad or limited authority to make decisions about the principal's property, finances, investments, or medical care.

When should a power of attorney be considered?

A power of attorney should be considered when planning for long-term care. There are different types of POAs that fall under either a general power of attorney or limited power of attorney . A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state.

How can I revoke power of attorney I have given to somebody?

Power of attorney can be terminated if you expressly revoke it. It may also have a set termination date or duration of time for which it is in force. If you become mentally incapacitated it will also cease unless it is a durable power of attorney. If you die, all powers of attorney cease.

Why do parents need POAs?

Ask parents to create POAs for the sake of everyone in the family—including the children and grandchildren— who may be harmed by the complications and costs that result if a parent is incapacitated without a durable POA in place to manage the parent’s affairs.

How long does a power of attorney last?

Many variations of power of attorney forms exist. Some POAs are short-lived; others are meant to last until death. Decide what powers you wish to grant and prepare a POA specific to that desire. The POA must also satisfy the requirements of your state. To find a form that will be accepted by a court of law in the state in which you live, perform an internet search, check with an office supply store or ask a local estate planning professional to help you. The best option is to use an attorney.

How long is a limited power of attorney good for?

A limited power of attorney may be in effect for a specific period. For example, if the principal will be out of the country for two years, the authorization might be effective only for that period.

What is limited POA?

For example, the limited POA may explicitly state that the agent is only allowed to manage the principal's retirement accounts. A limited POA may also be in effect for a specific period of time (e.g., if the principal will be out of the country for, say, two years).

What Does a Power of Attorney Do?

The POA gives the attorney in fact (also known as the agent) the power to make decisions about your affairs. The type of POA you create dictates which affairs you are granting power over.

Why is a power of attorney important?

Power of attorney is essential in the event that you're incapacitated or not physically present to make decisions on your own behalf. Learn more in our in-depth guide.

How to make POA legally binding?

To make your POA legally binding, sign and execute your document according to the laws of your state. This usually involves signing in front of witnesses or having it notarized. Consider giving a copy to your agent or letting your agent know where they can find a copy if needed.

What is an agent's legal liability?

As for legal liability, an agent is held responsible only for intentional misconduct, not for unknowingly doing something wrong. This protection is included in power of attorney documents to encourage people to accept agent responsibilities. Agents are not customarily compensated; most do it for free.

When do POAs take effect?

Some POAs take effect immediately after they're signed, and others only kick in after you're incapacitated.

What is the best way to choose a power of attorney?

Trust is a key factor when choosing an agent for your power of attorney. Whether the agent selected is a friend, relative, organization, or attorney, you need someone who will look out for your best interests, respect your wishes, and won't abuse the powers granted to him or her. It is important for an agent to keep accurate records ...

Why is it important to have an agent?

It is important for an agent to keep accurate records of all transactions done on your behalf and to provide you with periodic updates to keep you informed. If you are unable to review updates yourself, direct your agent to give an account to a third party.

What is a general power of attorney?

A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state. The agent under a general POA agreement may be (1) …

What does durable power of attorney mean?

A durable power of attorney simply means that the document stays in effect if you become incapacitated and unable to handle matters on your own. (Ordinary, or ” (26) …

What is a #POA?

A #Power of Attorney for Personal Care (“#POA”) is a legal document in which an individual can specify who has authority to make care decisions on his or (6) …

What is the purpose of a principal's health and finances document?

The main purpose of this document is to ensure the principal’s health and finances are taken care of by someone they trust in the event that they become (35) …

Can someone else act for you?

However, to allow someone else to act for you, you may need to execute a power of attorney. A power of attorney is a legal document that authorizes someone (18) …

Is a living will a medical power of attorney?

Both living wills and medical powers of attorney are advanced life directives, but they differ in purpose and execution. A living will specifies end-of-life (32) …

Does a power of attorney remove the power to act?

A power of attorney does not remove your power to act, it just authorizes someone else to also act under the limitations that you have placed. It is not the (11) …

What is a power of attorney?

Powers of attorney and similar directives are just one piece of your overall legal and financial planning puzzle. You'll also want to make sure you create a will and/or trusts and review them regularly, as well as regularly reviewing beneficiary designations on insurance policies, retirement plans and other property and accounts.

What is the strength of a power of attorney?

The strength behind a power of attorney. When it comes to advance planning, sit down regularly with your loved ones and discuss your intentions, as well as your potential financial and medical needs. Although this can be a difficult conversation, it’s crucial anyone involved in carrying out your intentions understands your wishes ...

Why is estate planning important?

Estate planning and advance planning can spare your family from having to make difficult decisions on your behalf — often on short notice and in a state of emotional distress. Do yourself and your loved ones a favor by making these decisions while you are healthy and thinking clearly so you can make sure your wishes are carried out when the need arises.

How long does a power of attorney last?

General power of attorney can remain effective until you pass away, but in most states it will automatically end if you become incapacitated.

What is a living will?

A living will indicates your specific desires about life-sustaining treatments. Your living will should go into as much detail as possible regarding your wishes in a variety of medical situations. For instance, do you want life-sustaining interventions such as cardiac resuscitation, mechanical respiration, tube feeding or antibiotics? Do you want pain relief only? Would you want artificial life support removed if you're found to be irreversibly brain dead? Do you want to donate your organs?

Can a durable power of attorney be used after you are incapacitated?

A durable power of attorney serves the same function as a general power of attorney, but it remains effective even after you become incapacitated. That way, your agent can manage all your affairs after your incapacitation without need for court involvement.

Does a durable power of attorney end at death?

It’s important to note that once you create a durable power of attorney, it automatically ends at your death. If you want the same agent to manage your financial affairs after your death, you should name that person as the executor of your will. Your power of attorney will generally otherwise remain in effect unless you later revoke it.