There are times in life when someone may be asked to fill out a power of attorney form. At another time, someone may decide that they need a formal means to allow someone to act on their behalf. Some people may have heard of a power of attorney, and others may simply be aware of such a creature, but have only a vague idea of what it does. So let’s define it, let’s see when it could be used, let’s see what types there are and what are the disadvantages and advantages.
In its simplest form, a power of attorney is a formal, legal means of transferring your authority to make certain decisions and act on your behalf, on your behalf, to another person. The types of actions allowed are generally defined to a certain extent and allow the document holder to make everyday decisions on his behalf, represent him in specific legal situations, or handle business, legal, or financial matters on his behalf. A completed form of power of attorney can state very specific situations in which it can be used, or it can be quite broad in scope, depending on your wishes.
The use of power usually takes the form of a kind of preemptive strike. You know that you will not be able to attend to certain matters, for example, so you assign the task of acting on your behalf to another person. People in the military, for example, are often away from home when important events occur, so they can run to the Judge’s Advocate General’s (JAG) office and fill out a power of attorney form to allow their spouse to take over. charge of certain events on your behalf. A company executive or owner may not be able to be physically present at a major business event and may empower another to act on their behalf. Others may simply be planning ahead for a time when they may not be able to make certain decisions for themselves. Having completed what is usually a relatively simple form assures them that someone they trust will be in control and can legally act on their behalf.
Basically, there are two types of power of attorney: durable and limited.
A durable power of attorney allows another party to act on your behalf in almost any form or type of business or transaction. Someone who wants to separate themselves at least semi-permanently from certain activities, such as buying and selling stocks or managing property, might choose this option. Disabled people who are unable to travel to conduct their own business may designate a trusted person to have the authority to act on their behalf. Someone who is preparing for a day when they will no longer be able to accurately assess and act on matters that require their thought, decision, and action can prepare for one before then.
Limited power of attorney is a simple matter. It is used to allow your representative to act on your behalf, but with certain limitations. There are essentially two possible limitations:
* By Task: In this form, the authority granted is stated specifically for a certain purpose… buying a car or selling a certain property, for example.
* By time: In this instance, specific date limits are set. This could be used if you were going to be out of the country for a week or two, but wanted to make sure certain things were taken care of while you were away.
As you can see, having someone available to act on your behalf at times when you are unavailable or incapacitated can be really helpful. This “proxy” can help you keep your affairs under control while you are busy with other situations or events. All they have to do is present the power of attorney form you prepared and sign it or act as if you were there yourself. The scope of authority, whether by task, time, or both, is easily written into the document. In the limited form, the authority granted will automatically expire at a certain time or upon completion of the task, but, as the person who did it in the first place, you can revoke it at any time.
It is a simple task to complete, but in some cases legal counsel may be recommended. It’s also a common task, and you’ll be able to find well-designed power of attorney forms at office supply stores and online.
