Managing Your Affairs: How a Power of Attorney Helps
A Power of Attorney (POA) is a legal document that allows one person, known as the principal, to grant authority to another individual, called the agent or attorney-in-fact , to make decisions on their behalf. This tool is essential for managing personal, financial, or legal matters when the principal is unavailable, incapacitated, or prefers to delegate responsibilities. Types of Power of Attorney There are several types of POA, each serving a specific purpose: General Power of Attorney : Grants broad powers to the agent to act on behalf of the principal in financial, legal, or business matters. Special or Limited Power of Attorney : Restricts the agent’s authority to specific tasks, such as selling property or managing a bank account. Durable Power of Attorney : Remains effective even if the principal becomes mentally incapacitated. Medical or Healthcare Power of Attorney : Allows the agent to make healthcare decisions when the principal cannot do so. Importance of a Power of A...