There are times in life when someone may be asked to fill out a power of attorney form. At another time, someone may decide that they need a formal means to allow someone to act on their behalf. Some people may have heard of a power of attorney, and some may just be aware of the existence of such a creature, but have only a vague idea of what it does. So, let’s define it, let’s see when it could be used, let’s see what types there are and what are the disadvantages and advantages.
In its simplest form, a power of attorney is a formal and legal means of transferring your authority to make certain decisions and act on your behalf, on your behalf, to someone else. The types of actions allowed are generally defined to some extent and allow the document holder to make daily decisions on your behalf, represent you in specific legal situations, or handle business, legal or financial situations on your behalf. A completed power of attorney form can set out very specific situations in which it can be used, or it can be quite broad in scope, depending on your wishes.
The use of the power of attorney generally takes the form of a kind of preventive strike. You know that you will not be able to attend to certain matters, for example, so you assign the task of acting on your behalf to someone else. People in the military, for example, are often away from home when important events occur, so they can run to the office of the Judge Advocate General (JAG) and fill out a power of attorney form to allow their spouse to take care of certain matters. events on your behalf. An executive or business owner may not be able to be physically present at a major business event and may empower another to act on their behalf. Others may simply be planning ahead for a time when they may not be able to make certain decisions for themselves. Having completed what is generally a relatively simple form, you assure them that someone they trust will have the kidneys and will be able to act legally on their behalf.
There are basically two types of power of attorney: durable and limited.
The durable power of attorney allows another party to act on your behalf and on behalf of almost any form or type of business or transaction. Someone who wants to separate at least semi-permanently from certain activities, such as buying and selling stocks or managing properties, can choose this option. Disabled people who are unable to travel to conduct their own business can designate a trusted person to have the authority to act on their behalf. Someone preparing for a day when they can no longer accurately assess and act on matters that require their thought, decision, and action, can prepare one before then.
Limited power of attorney is a simpler matter. It is used to allow your representative to act on your behalf, but with certain limitations. There are basically two possible limitations:
* By Task: In this form, the authority granted is specifically set for a certain purpose … to buy a car or sell a certain property, for example.
* Hourly – In this case, specific date limits are set. This could be used if you’re going to be out of the country for a week or two, but want to make sure certain things get sorted out while you’re out.
As you can see, having someone available to act on your behalf at times when you are unavailable or incapacitated can be really helpful. This “proxy” can help you keep your affairs under control while you are busy with other situations or events. All they have to do is present the power of attorney form you prepared and sign or act as if you were there yourself. The scope of authority, whether by task, time, or both, is easily written on the document. In the limited form, the granted authority will automatically expire at a specified time or upon completion of the task, but, as the person who performed it in the first place, you can revoke it at any time.
It is an easy task to complete, but in some cases legal advice may be recommended. It’s also a common task, and you can find well-designed power of attorney forms at office supply stores and online.