A General Power of Attorney (POA) is a legal document that grants someone else, known as the attorney-in-fact or agent, the authority to make financial, legal, and other decisions on behalf of the person creating the POA, known as the principal.
Key points about a General Power of Attorney include:
Scope of Authority: A General Power of Attorney grants broad powers to the agent, allowing them to handle a wide range of financial and legal matters on behalf of the principal. This may include managing bank accounts, signing contracts, buying or selling property, and making investment decisions, among other things.
Duration: A General Power of Attorney can be effective immediately upon execution, or it can become effective only if the principal becomes incapacitated or unable to make decisions for themselves. This type of POA is known as a "durable" power of attorney, as it remains valid even if the principal becomes incapacitated.
Revocability: A General Power of Attorney can typically be revoked or amended by the principal at any time, as long as they are still competent to make such decisions. Once revoked, the agent no longer has authority to act on behalf of the principal.
Responsibilities of the Agent: The agent appointed under a General Power of Attorney has a fiduciary duty to act in the best interests of the principal and to manage their affairs prudently and responsibly. They must keep accurate records of their actions and provide an accounting of their decisions if requested by the principal or a court.
General Powers of Attorney are commonly used for various purposes, such as allowing a trusted individual to manage the principal's financial affairs during an extended absence, illness, or incapacity. It is essential to carefully consider who to appoint as an agent and to clearly outline the scope of their authority in the POA document.