Power of Attorney
Power of attorney is a document in which one gives
his attorney the power to act and sign documents in
his place or on his behalf.
The power one gives his attorney can vary from person
to person according to ones needs and situation. thus
the power of attorney can be for one narrow purpose
and subject to limitation or conditions, or it can
be more general and even cover all aspects of ones
financial matters.
A power of attorney is usually given when one is
concerned he will not be able to function properly
in the future and will not be able to conduct his
financial affairs. This may be due to illness, accident
or even a long trip abroad.
The most important thing when issuing a power of
attorney is choosing an attorney you have complete
trust in. It is important you trust both his honestyand
competence to handle your affairs.
The second important thing to consider before giving
power of attorney, are the limitations and conditions
you add to the document.
These conditions can include stating when
the power of attorney will begin or end, stating specific
powers your attorney is allowed to handle etc'.
There are three main types of power of attorney:
1. General power of attorney. This is the broad document,
in which one provides the attorney the right to act
on his behalf on all or most financial matters. The
general power of attorney is usually used when one
is unable to handle his affairs, be it for physical
or mental reasons.
2. Special power of attorney. This is a
narrow document, in which one provides
the attorney the right to act on his behalf on a specific
issue. For examples: giving your agent the power to
sell your car.
3. Health Care Power of Attorney. This document is
used when you want to give your attorney the power
to make health care decisions for you, in the
event you are unable to make such decisions because
of the state of your health or mental fitness.
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