powerofattorney

A power of attorney, often abbreviated as POA, is a legal document that grants one person the authority to act on behalf of another person in legal or financial matters. The person granting the authority is known as the principal, and the person receiving the authority is known as the agent or attorney-in-fact. The scope of the agent's authority can be broad or limited, depending on the terms specified in the document.

There are several types of powers of attorney. A general power of attorney grants the agent broad authority to handle most financial and legal affairs. A limited or special power of attorney restricts the agent's authority to specific actions or a defined period. A durable power of attorney remains in effect even if the principal becomes incapacitated. A springing power of attorney only becomes effective upon the occurrence of a specific event, such as the principal's incapacitation.

A power of attorney is a crucial tool for estate planning and ensuring that someone can manage your affairs if you are unable to do so yourself. It is important to choose an agent whom you trust implicitly. The document typically requires notarization and sometimes witnesses to be legally valid. Once established, the power of attorney can be revoked by the principal, provided they are legally competent to do so. Failure to properly draft or execute a power of attorney can lead to it being invalid, rendering it ineffective in protecting the principal's interests.