What is Power of Attorney?

This video explains what power of attorney is in detail. A power of attorney is a legal instrument that confers the authority to function on your behalf to someone else. Such functioning is limited by the transactions and timelines that the legal document lists.

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A general power of attorney allows someone to transact on your behalf in daily activities like paying bills and dealing with third parties.

You can confer a limited power of attorney for specific representation in events like real estate closing, which require your authorization. It would be wise to give a durable power of attorney if you want a trusted person to keep representing you after incapacitation. You can also have a springing power of attorney, which comes into effect when your incapacitation aligns with the standards in the legal document. All power of attorney documents become null after death.

The person you confer your power of attorney with should only engage in transactions to your advantage. The authority in a power of attorney does not allow someone to use your resources for personal gain. The authorization in certain transactions, including donations, succession, leasing, and health decisions, can only change hands if the legal document expressly indicates it. It would be wise not to appoint more than one person to represent you to avoid third-party altercations.