Not everybody has our best interest at heart, and it is necessary to have everything on paper so that you know your belongings are taken care of and the person you trust is acting with the required care and skills within the powers of a power of attorney.
What is a Power of Attorney
A power of attorney is a legal document that gives authority to a person (agent) acting on your (person giving authority) behalf. A power of attorney should set out the agent's abilities to act on behalf of the person giving authority. This power includes but is not limited to signing legal documents, entering into contracts, regulating bank accounts, selling and/or buying property, and instituting legal action.
The different types of Power of Attorney
There at two types of power of attorney, a general power of attorney and a special power of attorney. A special power of attorney is used where a specific act is required to be concluded by the agent. An example of a special power of attorney is where the agent is to sign a sale of agreement on behalf of the principal.
A general power of attorney grants the agent more powers, including the power to amend the sale agreement, sign contracts and take possession of the property on the principal's behalf. An example of a general power of attorney would be when you grant the agent the capacity to handle all your affairs on your behalf.
What Are The Requirements For Having a Valid Power of Attorney
The principal must sign a power of attorney giving the agent power to act on his or her behalf. The signature needs to be by one witness to confirm the principal's signature. The principal must have the necessary capacity to enter into a power of attorney just like any other contract to give authority to the agent. The principle giving authority to the agent should be of sound mind and should also not be under 18. The intentions of the principal should be set out clearly in the document. To be sure that your intentions are evident in the document, it is of paramount importance that an attorney with the necessary skills and knowledge draft a power of attorney.
When Does A Power of Attorney Come To an End?
A power of attorney will end at the passing of the principal or agent or when either of them is declared mentally incapacitated. additionally, a power of attorney is terminated when the agent's authority ends after completing a specific action. Finally, the principal may cancel the agent's power of attorney by signing a document setting out the revocation date.
These are the main types of power of attorney available for you, be it the general or specific power of attorney. But, of course, you must make sure you use the correct power of attorney. Therefore, seeking legal advice before drawing up your contract or allowing someone to sign a power of attorney is essential.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.