A power of attorney is a legal document in which the document maker, the principal, delegates authority to another to act as an agent on the principal’s behalf.
A power of attorney may permit the agent to sign contracts, access bank accounts, make health care and financial decisions, sell property, establish trusts and gifts, and sometimes, file bankruptcy.
The document must be signed by the principal and at least two witnesses, and the principal’s signature and identification must be determined and acknowledged by a Notary.
A limited power of attorney provides the agent with authority to act only upon a specific and defined circumstance, such as the selling of a home. A general power of attorney grants broad powers to act on behalf of the principal, however the list of powers must be clearly listed in the document.
The agent may employ other parties with the assistance of the performance of the duties of the agent. Such employment or assistance does not substitute the duties of the agent to perform his or her duties. Such duties cannot be delegated by the agent. Such other parties may include accountants, attorneys, real estate agents, and other professionals.
The termination of a power of attorney occurs when the principal deceases, a power of attorney is revoked by the principal, the purpose or purposes of a power of attorney have been accomplished, its term has expired, or the principal is incapacitated, and a power of attorney is not determinative of whether such powers should continue after incapacitation.