Instead of naming specific tasks you’d like the agent to carry out (e.g., selling a property), you grant general authority over a topic (e.g., real estate) and the agent makes decisions for you.
The following are the main types of power of attorney and their uses: General Power of AttorneyĪ general power of attorney gives an agent broad powers to handle your affairs, and the authority to do almost any legal action that you can do.
Therefore, power of attorney forms have different names based on their duration and clauses. The contents of a power of attorney vary depending on how it will be used. Durable: The agreement stays in effect if the principal becomes incapacitated.Non-durable: The agreement ends when the principal becomes incapacitated.Incapacitated: When a person is unable to make decisions for themselves due to an injury, accident, or illness, they are legally “incapacitated.” For example, if someone has dementia or is unconscious (e.g., in a coma after a car accident) they are considered incapacitated.ĭurable: Depending on the purpose of the power of attorney, the agreement can be: They’re also called the “grantee,” or in some states the “attorney-in-fact” (which is different from an attorney-at-law, or a lawyer). The principal is sometimes called the “grantor.”Īgent: The power of attorney “agent” is the person appointed to make decisions on the principal’s behalf. Principal: The principal creates the power of attorney, and chooses which person will represent them. Using this legal document, the principal agrees to give the agent “power of attorney”, or the legal right to represent the principal in certain personal affairs. Let’s start with the meaning of power of attorney and some important legal definitions:Ī power of attorney is an agreement between two people (or parties), called the “principal” and the “agent”. Power of Attorney (POA): Meaning and Definitions You can decide whether your power of attorney stops, starts, or continues on if you become incapacitated and can’t communicate your wishes.ġ. managing all your accounts versus cashing individual checks). Power of attorney can give broad or specific powers (e.g. You can use a power of attorney to plan for the future or to manage your day-to-day life when you can’t be present to sign paperwork. A power of attorney is a legal document that lets you appoint someone to manage your financial affairs or your health care when you’re unable to.