Power of Attorney Template
A power of attorney template is required whenever one person needs to assign rights to conduct transactions for another person. This could be to authorize someone to oversee personal finances, conduct business transactions, or act as an agent for nearly anything a person does in their daily life.
The power of attorney template makes executing this legal document quite simple. The person writing the POA is referred to as the Principal and the person receiving authorization is referred to as the Attorney-in-Fact, or Agent.
Anyone can be designated as an agent, as long as they are of legal age. It's common to assign rights to spouses, relatives, business partners, realtors, financial planners, lawyers, and accountants.
There are several types of power of attorney forms. Some of the more common include: General, Durable, Limited, Special, and Medical. Each serves a different purpose, but all authorize the attorney-in-fact to execute transactions that are specified in the form.
There are a lot of reasons why people need to execute a power of attorney document. Most people find it helpful to talk to a lawyer to make certain they fill out the right form to fit their needs. At the very least, it's important to spend time researching the different forms and their uses.
Lawyers can execute power of attorney forms for a fee, but people can also create their own document. Nearly every type of POA template can be downloaded via the Internet. A good place to start is state government websites. Most states publish information about each kind of form and its uses, along with preformatted POA templates.
Every power of attorney has to be witnessed by two individuals that are not directly related to the Principal. A notary public has to be present when the witnesses sign the POA and apply their notary stamp.
Agents are only authorized to conduct transactions listed with the POA. General and durable power of attorney grant broad powers that can allow agents to conduct nearly any transaction the Principal would normally perform.
Limited or special power of attorney is used to grant authority to conduct specific transactions. Once agents complete the task the powers are withdrawn and agents are no longer allowed to engage in any type of transaction for the Principal unless a new POA form is created.
Agents are not bound to carry out duties outlined in the POA form, but once they commence with a transaction they are bound to act as in the best interest of the Principal. When finances are involved, agents are required to act as fiduciary and can face legal consequences if they engage in activities in unscrupulous fashion.
With that being said, it's important to select an attorney-in-fact that can be trusted to handle transactions with the utmost integrity. This is especially true when setting up a medical power of attorney.
Medical POA can be used to authorize agents to make healthcare decisions for the Principal, as well as providing caregivers of minor children authority to obtain medical care in the event of emergency. Most daycare facilities require medical authorization, but it's also important to set this up for home daycare providers and nannies.
Since minor children are not old enough to make healthcare choices, caregivers need to have written parental consent. Physicians will always provide medical care in life threatening situations, but they cannot continue with treatments or medications until they have permission from a parent or authorized healthcare agent assigned through the medical power of attorney.
These are just a few examples of why it's important to establish power of attorney rights for anything that requires legal permission. These include selling vehicles, real estate, business assets, managing financial accounts, and making healthcare decisions for a person who isn't able to do so for their self.
We invite you to learn more about using a power of attorney template to authorize agents to conduct personal and business transactions on your behalf. While we don't offer legal advice, our personal finance library offers information to help our visitors find the appropriate resources so the can make informed choices.
Published on November 22, 2011 at 03:49 AM | Comments: 1