A power of attorney is a legal instrument that permits someone to designate someone else to manage their affairs on their behalf. The principle is the person who initiates the power of attorney, and the attorney-in-fact is the person who is given control over the affairs. A power of attorney is only valid while the principle is alive, and can only be enacted by mentally competent principal. One could believe that by appointing a durable power of attorney, they will lose control over decision-making and the use of their assets. Want to know more, get in touch with State Trustees and the team will guide you for the same:
- A power of attorney (POA) is a legal instrument that authorises an individual, referred to as the agent or attorney-in-fact, to act on behalf of another person, referred to as the principal.
- Depending on the conditions of the POA, the agent may have broad or restricted authority to make legal decisions concerning the principal’s property, money, or healthcare.
- Conventional power of attorney, also known as a limited power of attorney, durable power of attorney, which lasts for a lifetime unless you cancel it, springing power of attorney, which only comes into play for specific events, and medical power of attorney, also known as a durable power of attorney for healthcare, are all examples of POA.
The Functions of a Power of Attorney
(1) Assuming responsibility for medical choices on behalf of the primary
(2) Acting on behalf of the principal in legal and financial problems
(3) Making decisions on behalf of a person who has lost mental capacity
Medical choices for the principle can be made when the individual has been unable to make the necessary decisions owing to their incapacity. This is also known as an advanced care directive, and it gives the attorney-in-fact the power to make medical choices on behalf of the principle. Additional than handling the principal’s healthcare requirements, it gives the attorney-in-fact no other rights or authority.
Who is a power of attorney?
An attorney-in-fact is a person who is appointed to manage the affairs of someone who has lost mental capacity and to act on behalf of someone else to conduct transactions. If a person lacks the necessary expertise to handle a legal or financial situation, they might appoint an agent to execute the transaction on their behalf.
Signing contracts, buying and selling stocks and bonds, paying bills, managing real estate, and just about any other task that an individual desires to assign to an agent may all be done with a power of attorney template.
A Power of Attorney’s Flexibility
A power of attorney is often conceived of as an instrument that is used to administer a person’s affairs only when that person becomes mentally incapacitated or incapable of properly managing their own interests. Many people believe that power of attorney is only used as a last option when people are no longer capable of making their own decisions. The reality is that a printable power of attorney is a very versatile legal tool that may be utilised in a variety of situations to aid people with both routine and difficult legal matters.
Conclusion
While a power of attorney is still an important tool for managing the affairs and estates of mentally ill loved ones, it has also evolved into a useful mechanism that allows people to delegate authority to professionals with specialised knowledge who can represent them in legal, business, and financial matters. This allows people to compete on an equal footing with larger institutions that have paid professional employees to act on their behalf.
