Power of Attorney
Candlefocus EditorThe most common type of Power of Attorney grants a person legal authority over the grantor's financial, legal and medical matters, enabling the attorney-in-fact to act on their behalf in various scenarios. A Power of Attorney can be used to buy, sell or transfer property as well, so it can be helpful for individuals who need to move in or out of state. It can also be used to sell securities and stocks, open and close bank accounts, or to sign contracts or other documents on the grantor's behalf.
When creating a Power of Attorney, you should be very specific and detail exactly the powers you are granting. For example, you can grant the attorney-in-fact power to make decisions about your medical treatments or make financial transactions, but you can also choose to limit the scope of their authority. It is also important to include restrictions or safeguards where appropriate, such as requiring that the attorney-in-fact keep records of all financial transactions they make or providing instructions on how to manage any big decisions that must be made.
It is important to note that the Power of Attorney ends when either the grantor or the attorney-in-fact dies, or when the grantor regains the capacity to act for him or herself. It can also be terminated by either party if a dispute arises. For these reasons, it is important to evaluate regularly the Power of Attorney and to cease it if there is any reason to believe that is being abused or misused.
In conclusion, a Power of Attorney can be a very useful document for those seeking to limit the effects of incapacity, disability, or a change in location. It allows the grantor to have the peace of mind that their affairs will be taken care of while they are unable to do so themselves. Careful consideration must be taken when drafting the document and setting out limits or safeguards to ensure the best interests of the grantor are protected.