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Download power of attorney form in Microsoft Word format.
Power of Attorney Form: Which Type Do You Need?
Are you currently in a situation in which you may require someone to handle your affairs for a time? If so, you may want to consider the power of attorney process, but do you know which type of power of attorney form you’ll need to make this appointment legally binding? There are several reasons why you may need a power of attorney form at some point in your life. For example, if you’re worried about how your financial affairs will be handled in the event you become capacitated, you may want to have a power of attorney form in place that will ensure only someone you trust will take care of things on your behalf. In this article we will discuss the various reasons why someone would need to appoint a power of attorney and outline the various power of attorney forms that are most appropriate for each situation.
Power of Attorney Form: Definition and Function (s)
A power of attorney form is the document used when you wish to grant legal authority or permission to another individual to act on your behalf. In situations where a power of attorney is needed, the person who is granting legal permissions is known as the “Principal” or “Granter,” and the person to whom these permissions are granted is known as the “Agent” or “Attorney-in-Fact.”
There are two broad categories when it comes to granting power of attorney: limited power of attorney and general power of attorney. These are explained below:
Limited Power of Attorney
A limited power of attorney entitles the agent to handle only the decisions and/or transactions that you stipulate on the power of attorney form. Some of the situations in which you would use a limited power of attorney include:
- You need someone to handle real estate or business transactions on your behalf while you are traveling abroad.
- You need to appoint someone to file your tax returns or other important documents
- You become ill and you want one of your children to have access to your bank accounts
There are different types of forms to handle the various limited power of attorney agreements. Some of these include:
- Health Care Power of Attorney. With a health care power of attorney, you are appointing someone you trust merely to make certain health care decisions should you become incapacitated. These decisions can range from giving consent for medical treatment and procedures to removing life support equipment should the principal in the agreement so desire.
- Financial Power of Attorney. As the name suggests, a financial power of attorney means you are giving your consent for the agent to handle all of your financial affairs, including banking, real estate and taxes.
General Power of Attorney
The general power of attorney is much broader in scope. When this type of document is put into force, the principal is effectively giving extensive powers to the agent to handle any and all of his/her affairs. This type of document is typically used for estate planning purposes or in serious health situations. General power of attorney agreements may also contain certain provisions which usually require a separate power of attorney form. These include:
- Durable Power of Attorney. All powers of attorney become ineffective once the principal dies. At this point the executor named in the principal’s last will and testament (who may be the same person to whom power of attorney was granted) will take over. Also, from a legal standpoint, a general power of attorney becomes ineffective if the principal becomes incapacitated, unless the principal had previously drafted and signed a durable power of attorney. This type of power attorney is very popular as it will remain in effect even after the principal becomes incapacitated.
- Springing Power of Attorney. A springing power of attorney remains dormant until the principal becomes incapacitated. At that point the agent will be granted all the powers and permissions that were outlined in the general power of attorney form.
Both limited and general power of attorney forms serve a wide variety of purposes. For example, limited power of attorney is invaluable to businessmen who regularly need someone to act on their behalf when they’re out of the country, and to those who are temporarily unable to conduct their affairs due to failing health. The general power of attorney form is ideal for those who may be permanently unable to handle their own affairs due to illness, and for those in the process of estate planning who want to ensure their future affairs are handled by someone close to them.