A power of attorney (POA) or letter of authorization is a written document that authorizes another person to represent you in private affairs, business matters and other legal cases. The principal who grants this type of authority must sign the POA before it becomes valid; after which time they become known as the donor. Once granted, an agent can take on many different roles such as making decisions about finances for their client or even managing property title deeds if necessary without any interference from authorities.
What Is A Power Of Attorney?
Power of attorneys are documents signed by grantors – those with decision-making capacity giving another individual or organization permission to act on his behalf when he cannot do so himself due to illness, injury etcetera. The power of attorney is not limited to medical decisions only, but can also be extended to financial and property matters. The power of attorney appoints a personal agent, or an alternate agent acting as power of attorney if the first power fails to act on time. A power of attorney can be revoked by the grantor at any time during his lifetime.
The power being granted applies only under circumstances in which the donor doesn’t have the capacity.
Power of Attorney is different from guardianship – one has been appointed by the court while another comes with the power granted by your spouse. There are three types: general power of attorney which covers all affairs; limited power which covers a specific deal like car sale, house purchase, etc.; and special power which is custom-made for your needs.
Power of attorney terminates automatically when the power dies or if it’s revoked by the donor before power is being transferred to the agent/attorney-in-fact. Power can be terminated in two ways: If power of attorney has been revoked, and this revocation is communicated to authority; and if power of attorney expires after a specific period (generally 90 days).
Power can also cease to be valid due to changes in circumstances which include bankruptcy, incompetence, incapacitation, death etcetera.