Power of Attorney

Power of Attorney Explained:

The power of attorney is an important legal document that enables someone to make decisions on behalf of you. The person who gets this authority via power of attorney is called the agent. They would have the right to act and make decisions on behalf of you. This legal document should be kept safe to prevent any misconduct. The power of attorney has some importance to provide authority to someone you trust to manage your finances and property. Power of attorney also enables someone to make decisions on your behalf, such as paying medical bills, etc. 

Types of Power of Attorney

When it comes down to the various different types of POA, the list can be a long one. Some of the most common types are written below; let’s take a closer look at each one of them.

1. Health Care Power of Attorney: The principal creates and signs a health care power of attorney to transfer the authority to make the right decision on behalf of him in any serious medical condition. 

2. Financial Power of Attorney: Financial power of attorney enables the authority taker to act and make decisions regarding finances, property, and monetary decisions on behalf of the principal. Financial power of attorney is generally three types. Which are:

3. General Power of Attorney: General power of attorney enables the agent to take and act in any kind of matter on behalf of the principal. The agent will act according to the mentioned clauses in the document.

4. Limited Power of Attorney:Limited power of attorney is a special type of legal document that allows the agent to act and make decisions in some specific matters. They can act only in those situations which are mentioned in the documents.

5. Durable Power of Attorney:A durable power of attorney holds some control, such as some legal, property, and financial situations mentioned in the legal documents. The person who has durable power of attorney can only pay medical bills on behalf of the principal but can't make decisions for their health condition.

How Does a Power of Attorney Work?

The person who transfers the authority is known as a principal, and the person who is receiving the authority is known as an agent or attorney-in-fact. An agent can be one of the family members or someone trustable. The document should be signed by both the principal and the agent.  After the procedure, the agent grants the authority to act on behalf of the principal. It is important to understand the rules and conditions of the power of attorney for both parties clearly. 

WebLex’s Stance:

Any individual is required to create a power of attorney if he/she wants to transfer the authority of a property to someone else who can make decisions on their behalf. Understanding the purpose of power of attorney and the types of this legal document is necessary. You should be very careful while transferring the authority to someone. The agent should be trustworthy and from your family member.