A document that gives another person legal authority to act on your behalf. If you create such a document, you are called the principal, and the person to whom you give this authority is called your attorney-in-fact. If you make a durable power of attorney, the document will continue in effect even if you become incapacitated. For examples, see durable power of attorney for finances; durable power of attorney for healthcare.
n. a written document signed by a person giving another person the power to act in conducting the signer’s business, including signing papers, checks, title documents, contracts, handling bank accounts and other activities in the name of the person granting the power. The person receiving the power of attorney (the agent) is “attorney in fact” for the person giving the power, and usually signs documents as “Melinda Hubbard, attorney in fact for Guilda Giver.” There are two types of power of attorney: a) general power of attorney, which covers all activities, and b) special power of attorney, which grants powers limited to specific matters, such as selling a particular piece of real estate, handling some bank accounts or executing a limited partnership agreement. A power of attorney may expire on a date stated in the document or upon written cancellation. Usually, the signer acknowledges before a notary public that he/she executed the power, so that it is recordable if necessary, as in a real estate transaction.
Power of attorney is a legal document (but not a court form) which gives one person the power to act for another person. Power of attorney can give limited or broad legal authority to someone to act for the benefit of another person, who is called the principal. Power of attorney is often used when a principal becomes sick, incapacitated or mentally incompetent and is unable to manage their finances or legal affairs.
The power of attorney document is created by the “principal.” The principal gives the power to someone else to act on their behalf who is called the attorney-in-fact, although they do not have to be a lawyer, only a competent adult who is 18 years or older. The power of attorney can be designated for a specific time or it can be cancelled by the principal.
A power of attorney is a legal instrument used to delegate authority. Under the power of attorney, a principal delegates authority to a trusted agent.
While the power of attorney is in effect, the agent then has a fiduciary duty to the principal. The exact scope of authority is spelt out in the power of attorney document. Three types of power of attorney are known as durable, springing, and nondurable. A durable power of attorney is effective once executed and until revoked. A springing power of attorney goes into effect at some defined future time. For example, medical power of attorney may come into effect as soon as a doctor certifies that the principal is incapacitated, enabling the agent to make medical care decisions. A nondurable power of attorney is finite, thus suitable for a specific purpose. For instance, many principals grant their real estate attorney nondurable power of attorney to handle a specific transaction closing. In New York, a power of attorney used in a real estate transaction must be filed with the County Clerk.
Power of attorney is a legal document that gives an individual the right to act on behalf of the one signing the document.
A Power of Attorney(POA) can be a general power of attorney or better, a restricted power of attorney, limited to acting on behalf of another to pay bills, deposit funds or limited ability to withdraw funds to benefit the grantor of the POA. The restricted powers can be limited as appropriate such as to a specified transaction, to certain kinds of business (e.g., only real estate, only banking, only stock market transactions, etc.), to certain geographic areas (e.g., transactions in Europe) or for a specified period of time.
Restricted powers of attorney are attractive because of possible horror stories such as the individual empowered to pay bills who signs a contract to sell a major asset.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March, 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/power-of-attorney/
- Modern Language Association (MLA):Power Of Attorney. dlssolicitors.com. DLS Solicitors. April 29, 2024 https://dlssolicitors.com/define/power-of-attorney/.
- Chicago Manual of Style (CMS):Power Of Attorney. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/power-of-attorney/ (accessed: April 29, 2024).
- American Psychological Association (APA):Power Of Attorney. dlssolicitors.com. Retrieved April 29, 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/power-of-attorney/