Thursday, September 1, 2011
Power Of Attorney Types
Power of attorney is a legal instrument in which the individual willingly provides authority to another person to act as a legal representative on his/her behalf. The duration of the authority will continue until the principal party revokes it by himself. In the document, the principal can give limited power or full power to the other person or agent. By providing the authority to another person it doesn't mean that the principal cannot take decisions. According to the document the other person also can execute things mentioned in the document for you.
This becomes effective immediately after the principal provides the power to another person. Because of this, the agent can perform tasks instantaneously as per the document. As the power goes to the hand of the agent immediately, you should have complete faith in the person who is appointed as your agent. The agent can act without the permission of the person who had given the power to him. This is preferred frequently as it becomes automatically effective. It is convenient to both the parties as it does not need to satisfy any other conditions to become effective.
The authority of the person is limited for a specified period of time. In this case, the agent cannot act on behalf of the person until the person becomes incapacitated. The agent has to finish the task within a particular period of time and when the task is complete, the principal will get back the power. This is normally used in short-term transactions in which the principal is unable to handle the transactions. This one also becomes effective instantaneously just like durable power of attorney.
This is mainly useful in situations where the person could not give the permission either in writing or verbally. To get the power to act for the principal, a doctor has to attest that the principal cannot act for themselves and hence an attorney-in-fact is needed. This is used in cases such as serious accident, mental illness or trauma of the principal.
Power of attorney should not be granted to all affairs of the principal. There are certain restrictions on that as sometimes it is applicable only for one aspect like financial. The differences are as follows:
4. Limited or Special
This is mainly used along with non-durable type in special cases. This one is applicable in the case of financial matter or certain property sale. Even though an attorney-in-fact is there, they cannot control any aspects of the principal. But General Attorney can deal with all the dealings and affairs of the person.
5. Health Care
This is used when the principal is mentally or terminally ill and the power will be given only to take medical decisions.
Article Source: http://EzineArticles.com/6160641
Posted by Anonymous at 8:06 PM