How To Designate Power Of Attorney?

Power of attorney (POA) is a legal document that gives someone else the authority to act on your behalf in a variety of circumstances. While this document can be very useful in many situations, it is important to fully understand the implications of signing a POA before taking the step to designate someone with this authority.

I. What is Power of Attorney?
A power of attorney is a legal document that gives another person (the “attorney-in-fact”) the authority to act on your behalf. This authority can be limited, allowing them to take specific actions, or it can be broad, giving the attorney-in-fact the power to make decisions on your behalf.

II. Types of Power of Attorney
There are two main types of power of attorney. The first is a durable power of attorney which remains effective even if the person granting the power of attorney becomes incapacitated. The second type is a non-durable power of attorney which is typically used for a specific purpose, such as closing on a real estate transaction, and becomes invalid if the person granting the power of attorney becomes incapacitated.

III. Who Can You Designate as Power of Attorney?
When selecting someone to act as your attorney-in-fact, it is important to choose someone you fully trust. This person should be reliable, trustworthy, and have your best interests in mind. In some cases, you may want to name more than one person to act as your attorney-in-fact.

IV. Disadvantages of Designating Power of Attorney
There are several disadvantages to granting someone power of attorney. For example, the attorney-in-fact has the authority to make decisions on your behalf and can make decisions that you may not agree with. Additionally, the attorney-in-fact may use the authority to their own financial benefit, rather than to your benefit. Furthermore, the attorney-in-fact may use the authority for an extended period of time, potentially making decisions that you no longer agree with.

V. Signing the Power of Attorney
Before signing a power of attorney, it is important to read the document carefully and fully understand the implications of granting someone else the authority to act on your behalf. Additionally, it is important to obtain a notarized signature from both parties, as well as witnesses, if required.

Designating power of attorney can be a useful tool in certain situations, but it is important to understand the implications of granting someone else the authority to act on your behalf. Before signing a power of attorney, consider the disadvantages and make sure you are comfortable with the decisions that have been made.

1 thought on “How To Designate Power Of Attorney?”

  1. EfficientAdvocate

    Excellent advice on designating power of attorney. Knowing the legal ins-and-outs of this process can be incredibly useful – ensuring everything is handled to the letter of the law.

Leave a Comment

Your email address will not be published. Required fields are marked *