|Power of Attorney |
This article explains different types of power of attorney, and how to use them and how to limit the powers of agents/attorneys.
What Is Power of Attorney?
A power of attorney is a legal document in which one person (the principal) appoints another person or organization to act as an agent on his or her behalf, thus conferring authority on the agent to perform certain acts or functions on behalf of the principal.
The person or organization you appoint is referred to as an "Attorney-in-Fact" or "Agent."
Types of Powers of Attorney:
General Power of Attorney
This is where you appoint someone, usually for a specific period of time, to make financial or legal decisions for you. If you appoint a General Power of Attorney and then lose legal capacity at a later stage the appointment will no longer be valid and the person you have appointed will no longer be able to make decisions on your behalf.
Special Power of Attorney
A special power of attorney allows you to give only specific powers to the person or organization you appoint as your Agent. For example, you could authorize someone to sell a car or a house for you.
What is Enduring Power of Attorney?
An enduring power of attorney allows you to delegate the management of your affairs even if you’re no longer able to understand the implications such as if you become mentally incapacitated. However, an enduring power of attorney can only be given while you’re able to understand the nature and effect of the document. There are special rules about the creation of enduring powers of attorney and the responsibilities of the attorney.
Enduring Power of Attorney (Financial)
This is where you appoint someone to make financial or legal decisions for you in the event of you losing, at some time in the future, the capacity to make those decisions for yourself
Enduring Power of Attorney (Medical Treatment)
This is where you appoint someone to make medical treatment decisions for you in the event of you losing, at some time on the future, the capacity to make those decisions yourself
Enduring Power of Guardianship
This is where you appoint someone to make lifestyle decisions for you, such as where you will live, in the event of your losing, at some time in the future, the capacity to make those decisions yourself.
Why Make A Power Of Attorney?
A power of attorney enables a donor's affairs to be managed by a person of their choice when they are unable to conduct them personally, such as if they are ill, travelling overseas or become mentally incapacitated.
Powers of Agent / Attorney
These powers usually include:
• Handling banking transactions
• Entering safety deposit boxes
• Handling transactions involving U.S. securities
• Buying and selling property
• Purchasing life insurance
• Settling claims
• Entering into contracts
• Exercising stock rights
• Buying, managing or selling real estate
• Filing tax returns
• Handling matters related to government benefits
You also have the option to grant the following additional powers to your Agent:
• Maintaining and operating business interests
• Employing professional assistance
• Making gifts
• Making transfers to revocable ("living") trusts
• Disclaiming interests (this has to do with estate planning strategies to avoid estate taxes)
Can I Limit my Attorney’s Powers
You can limit or place conditions on how you want your attorney/s to carry out their responsibilities. For example, you could limit their authority so that they only deal with shares, or they can pay bills, but not deal with your property.
If you do not specify any limits, your attorney will be able to make any financial or legal decisions on your behalf until the appointment is changed or cancelled, or you lose capacity.
In order for a power of attorney document to be valid, you must be mentally competent when you sign it. This means that you must understand the powers that you are granting to your Agent and the implications of having someone else make decisions for you. If there is any question about your mental competence, it's a good idea to have a physician evaluate you and state in writing that you are competent.
If you have signed a durable power of attorney document, it will either remain in effect or go into effect if you become mentally incompetent.
Registering A Power Of Attorney
A Power of Attorney must be registered before it becomes effective.
Duration Of A Power Of Attorney
A power of attorney remains in force until:
• it is revoked;
• it is terminated by the death, bankruptcy or insolvency of the; or
• the purpose or time for which it was created has been fulfilled or has passed.
It is also assumed that the agent will be completely honest and truthful with his business dealing in representing the donor. When the attorney/agent is proven to be dishonest and fraudulent, all the things that he has signed – when the power of attorney is still in effect – will be deemed invalid.
Once I Have Created a Power of Attorney Can I Still Act on My Own Behalf?
Yes. The power of attorney gives your agent the legal right to act on your behalf. However, it does not remove the power for you to act for yourself.
Power of Attorney Revocation
A power of attorney can be revoked at any point in time. Usually they are revoked when either the agent or the principal decides that the arrangement isn’t succeeding as planned. You can revoke the power of attorney in writing, by telling your agent, or by tearing it up or crossing it out or any other act that shows you want it revoked. Tell your agent that you are revoking the power of attorney. You should also tell your bank and other financial institutions.
Power of Attorney Templates
The General Power of Attorney is often a blanket agreement, but you can create a more specific tailored document using our template.
Net Lawman site has various templates of power of attorney. The templates have been designed to protect your legal rights when you need to hand over power of attorney to another. You can customize the template according to your own wishes. The document available for download is written by expert team of Solicitors and Barristers to ensure your rights are being protected.
You can edit the documents when you need to and reuse it at any time. The templates are useful for long term and short term appointments of power of attorney.
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All Net Lawman documents are written in plain English, come with explanatory notes on best use and are updated from time-to-time as new law requires.
Net Lawman goal is to provide best quality, cost effective, easily accessible legal services to the World. We provides best collection of legal documents in plain English on the Internet.