Power of Attorney Guidelines
A power of attorney (POA) is a legal document that allows one person (the agent) to perform legal acts, such as selling a home or withdrawing money from a bank account, on behalf of someone else. There are four main types - a limited POA, a durable POA, a general POA, and a springing POA. Because this type of document is so powerful, great care should be taken in thinking through its contents.
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Types
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A limited POA authorizes your agent to perform a specific act or set of acts - for example, if you are living overseas, you may want your brother to sell your automobile in the United States. A durable POA enables your agent to act for you with respect to certain tasks from the time the document is signed until your death, even if you become incapacitated or disabled. A general POA allows your agent to perform any act that you are able to perform yourself. A springing POA takes effect upon the occurrence of a specific event, such as your incapacitation due to illness (a living will is a good example). These are broad categories, and your POA can be drafted to meet your particular needs without fitting neatly into any one of them.
Identification of Parties
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Your POA must identify both you and your agent clearly enough to avoid any misunderstanding, whether accidental or deliberate. Your agent does not have to be an attorney. Your full names and addresses should be used, along with an official identification number, such as a social security number, driver's license number or tax ID number.
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Period of Validity
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It is absolutely essential that you state clearly exactly when your agent's authority begins and ends. Depending on the situation, you may want to have your agent's authority begin at the moment you sign the document, on a certain date, or upon the occurrence of a contingent event ("upon my incapacity or disability," for example, if you are drafting a springing POA). You may want your agent's authority to end on a certain date, upon the occurrence of an event (when your brother sells your automobile, for example), or upon your death.
Content
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In general, you should not use a sample POA form (except a Statutory Durable Power of Attorney Form issued by a state government) without modifying it, because it will probably need to be individualized to fit your particular situation. Think very carefully about exactly what you would like your POA to accomplish. Carefully choose your wording to give your agent enough authority to carry out your purposes without drafting it so broadly that it gives your agent "blank check" authority without a need for it.
Witnesses
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The legal validity of a POA form is governed by state law, and certain formalities must be observed for the document to be legally enforceable. In many states, you will need two witnesses to sign the document attesting that they were present when you signed it. These signatures should also be notarized, and the notarial seal should be visible on the document. This will require you and your witnesses to present valid, government-issued photo ID.
Revocation
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You may revoke your POA at any time as long as you remain mentally competent, by simply signing a written statement of your intent to revoke. You will have to deliver this statement to any third party with a need to know of it (such as a bank). Any transactions your agent undertakes with a third party will be legally valid until that party knows or has reason to know that your agent is no longer authorized to act on your behalf.
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