Power of Attorney is a lawful document which grants you the legal right to appoint another individual to act on your behalf and manage your financial affairs, property or health related affairs. A Power of Attorney can commence with immediate effect or in the event whereby you may be incapacitated in the future and is no longer in a state of mind to make your own legal decisions.
A Power of Attorney allows you to appoint a parent, spouse or any other competent individual to act on your behalf. The major reason for any Power of Attorney is the appointment of someone who can make decision, execute important tasks or sign documents on your behalf when you are no longer in a position to do so yourself.
The person who grants the Power of Attorney, is the principle, whereas the person receiving the authority to act on behalf of another individual, is the agent or attorney-in-fact. Fundamentally there are various types of Power of Attorney.
“Durable” Power of Attorney remains binding even in the event of your being incapacitated. Should you neglect to specify durable Power of Attorney, such Power of Attorney will cease when you are incapacitated. “General” Power of Attorney provides the individual you appoint with the authority to manage your financials affairs and assets while you are still alive. “Limited” Power of Attorney allows the agent to act on your behalf on specific matters only when you are unable to do so. As soon as the principle passes away, the Power of Attorney in all cases will cease.