Understanding Power of Attorney Limits

Table of Contents

• What Is Power of Attorney?
• Types of Power of Attorney
• Limits of Power of Attorney
• Who Is the Best Person to Be Power of Attorney?
• Can a POA Withdraw Money from a Bank Account?

What Is Power of Attorney?

Power of attorney (POA) is a legal document through which a person grants another person or organization the right to make decisions and take action on their behalf. A POA is a powerful legal document and it must be used responsibly. Generally, a POA authorizes the designated individual or organization to make decisions on behalf of the person granting the power.

Types of Power of Attorney

There are many different types of POA. The most common type of POA is a durable POA, which grants decision-making authority to the designated individual or organization in the event that the person granting the power becomes incapacitated. Other types of POA include general POA, medical POA, financial POA, and limited POA.

Limits of Power of Attorney

The power of attorney is limited by state law, and the scope of the POA must be clearly defined in the document. Generally, the POA must be in writing and must be signed by the person granting the power. Additionally, the POA is generally limited to the specific tasks and decisions specified in the document.

Who Is the Best Person to Be Power of Attorney?

The best person to be power of attorney is someone who the person granting the power trusts to make decisions in their best interest. This is typically a spouse, child, parent, or close friend. Additionally, the person should be responsible, have good communication skills, and have knowledge of legal and financial matters.

Can a POA Withdraw Money from a Bank Account?

Yes, if the POA document specifically grants the designated individual or organization the power to withdraw money from a bank account. Generally, the bank will require a copy of the POA document before allowing the designated individual or organization to access the account.