Power of attorney

A Power of Attorney (POA) is a legal document in which one person, known as the principal, appoints another person (the agent or attorney-in-fact) to act on their behalf. The agent is granted authority to perform specific acts or types of acts as designated in the document. Key Features of Power of Attorney Principal and Agent Principal: The person granting authority. Agent (Attorney-in-Fact): The person authorized to act for the principal. Scope of Authority Can be specific (limited to certain acts, e.g., selling property) Or general (broad authority over financial, legal, or personal matters) Legal Validity Must be in writing and usually signed and notarized to be legally enforceable. Governed by laws in the principal’s jurisdiction. Revocability The principal can revoke or modify the power of attorney at any time, provided they are legally competent. Types of Power of Attorney General Power of Attorney Grants broad authority to act in all matters specified in the document. Special or Limited Power of Attorney Grants authority to act in specific situations or for particular tasks only. Durable Power of Attorney Remains valid even if the principal becomes mentally incapacitated. Medical or Healthcare Power of Attorney Authorizes the agent to make medical decisions on behalf of the principal. Importance of Power of Attorney Enables someone to manage affairs when the principal is unavailable or incapacitated. Provides legal authority for financial, property, or healthcare decisions. Helps avoid disputes or misunderstandings about authority. Ensures continuity in decision-making for personal, business, or legal matters. Example A property owner (principal) grants a trusted friend (agent) the authority to sell their house while they are abroad. The friend can legally complete the transaction on behalf of the owner.