“Power of attorney” is a legal tool that allows another individual the authority to act as a person’s legal representative. This gives that person the power to make binding legal and financial decisions on a person’s behalf.
It is not exceptionally difficult to find forms to grant someone the power of attorney via the internet, but there is typically not a lot of explanation of what a power of attorney is. In addition, there is very little information concerning when a person needs a person to act as power of attorney or even what type of power of attorney to choose. These are very difficult decisions to make as giving the power of attorney to someone gives that person considerable power over your life. Because an individual with power of attorney has the ability to sign a different person’s name to legal contracts, careful consideration should be given to choosing a person and whether or not limits should be placed on how long the power of attorney will last and what limits should be imposed on a person’s powers.
There are, broadly, two basic types of powers of attorney. A “general” power is unlimited in both its scope and in its duration. This granted type of power permits the named individual to act as a person’s legal representative in relation to all financial matters until the power is revoked.
A “specific” power creates limits on a person’s named representative. It is possible for a “specific” power to bind a representative’s powers to one single type of conduct or even a single transaction. As an example, the representative could be granted the power to engage in financial transactions stemming from a specific checking account or be given the power to sign the closing documents for a specific real estate transaction. These activities are very limited and are assigned to a specific type of transaction. They are not nearly as broad as “general” powers are.
Either type of power can be limited in its duration. This means that the person selecting a representative can specify a date after which the power of attorney assigned to that representative will no longer be valid.
Typically, forms granting power of attorney do not have to be registered with the state. If a form grants an individual the rights to engage in transactions and dealings pertaining to real estate, it may be required that the forms be registered with the state.
If you would like more information concerning power of attorney or other legal transaction related to probate, please visit http://www.probatelawyeraustin.com.
By: Joseph Devine