What Is a Special Power of Attorney?
A special power of attorney, often referred to as a limited power of attorney, is a legal authorization for somebody else to make certain decisions on your behalf. There are many types of special powers of attorney.
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Function
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Most people have at least one or two special powers of attorney as part of their estate plan. The special power of attorney allows you to plan for unexpected accidents or medical situations.
Generally
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A special power of attorney is a legal document where you, the principal, authorize another person, called an agent or an attorney in fact, to make legally binding decisions for you. When you draft your special power of attorney, you can define all of the rights and limitations imposed on your attorney in fact.
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Types
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The most common types of special powers of attorney are the health care power of attorney and the financial power of attorney. The financial power of attorney allows your attorney in fact to handle your money and property. The health care power of attorney allows your attorney in fact to authorize medical and health care for you.
Time Frame
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Most powers of attorney take effect only upon your physical incapacitation or mental deficiency. For example, if you are in an accident and you end up in a coma, your health care attorney in fact can authorize doctors to put you on life support and provide surgical services that you need, and your financial power of attorney can authorize payment for those services.
Warning
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Special powers of attorney are helpful but potentially dangerous legal documents. You should think very carefully about who you name as your attorney in fact because that person will have broad discretion to take care of you and your money.
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