Do you know about the power of attorney? It is a legal word commonly used by the lawyers in United States. Let us discuss the power of attorney and its significance. A power of attorney (POA) is a legal document given by one person to another person legal authority to act on his or her behalf. The giving person is called as the principal and another person is called the agent or attorney in general. In most of the situations, attorneys in USA are the agent.
The power of attorney is classified in two ways. It is according to the time period in which they are in effect, and by the types of legal matters they cover. By law, a power of attorney active at the moment it was signed by the principal and ended if the principal became mentally helpless. Let us discuss different types of power of attorney. The power of attorney is classified as the general power of attorney, special power of attorney, health care power of attorney, durable power of attorney, springing power of attorney.
It is normal power of attorney granted by the principal to the agent. The principal grants authority to the agent because he is unable to make the decisions his/herself. The agent or the attorney have legal rights to take decisions such as medical, financial and legal.
It can be called the limited power of attorney. This power of attorney is used on a limited basis. When the principal has already committed a function or any activities, he can give the power of attorney to the agent for selling a property or bank transactions. The agent has no rights to take any further decision against the power of attorney.
It can be called the medical power of attorney. If the principal has health issues, the principal gives power of attorney to the agent. The agent has the rights to make health care decisions of the principal. This process can be done only by the pres c r i p tion of a medical practitioner.
This power of attorney can be used to grant the agent to control or manage all the properties and affairs of the principal should they become unable to do so. It has no time limitations. It becomes effective immediately upon the helpless of the principal. The expiry of this power is as long as the death of the principal.
It is effective in future time. Because when the principal becomes helpless to manage his affair, at that time the agent has rights to take decisions of the principal. Springing power of attorney may be a durable power of attorney.
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