The Power of Attorney or POA is a legal document that gives an individual the right to select someone else to act on their behalf in all financial and legal matters. This creates a situation where the power is in the hands of the agent, who can either be called an agent or the attorney-in-fact, to act and make decisions on behalf of the principal, the person granting the power.
The power to conduct financial transactions and address legal matters is entrusted to the agent when a General Attorney is given to him. Generally, the power of attorney is utilized when the principal becomes unable to cater to the contractual obligations as a result of physical or mental incapacity.
However, by the Power of Attorney with Limited Authority, the agent is granted only the power to complete specific operations or a defined duration. The agent of the Durable Attorney is allowed to exercise the power even while the principal is in some way incapacitated. As the most common POA, this kind of POA is essential for long-term planning purposes and for naming a nominee to take over the principal’s affairs when the principal is not physically capable of carrying it out as well.
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