Power of attorney can be a tricky thing to do because you are basically giving another person full right to act in your stead in personal and legal matters. This means that the person who you have given the power of attorney to, which is called the “agent” or the “attorney in fact,” will have the right to sign legal documents in your name and even have access to your bank accounts, among other things. Thus, it is important to look into the validity of these powers of attorney and the circumstances when they can become invalid. So if you are thinking of giving a power of attorney, read on.
Because of the sensitive nature of this, power of attorneys are often only given to people that the “principal” ( the person giving the power of attorney to the agent) absolutely trusts. This can be a son or daughter, a parent or other close relations.
Do not be fooled with the name. Anybody can be given the power of attorney, even people who are not lawyers, although most of those who are given such responsibilities are family lawyers of rich people or corporate lawyers of big corporations, whose job entails them to represent the CEOs or the big bosses, which are often required to be in three places at the same time, which is of course, not humanly possible.
Power of attorney often has a scope, depending on the agreement or the dictates of the principal. In most cases, the power of attorney will only have an effect on specific cases or issues. Some will be stating a specific period of time while others will be point to more specific business dealings. For instance, a power of attorney may be granted to sign a business deal with Conglomerate X but will not be effective when signing deals with Conglomerate Y even if they are signed on the same day.
It all depends on the legal papers that accompany the power of attorney. And these papers stating the contract for the power of attorney is required to be shown before an agent can act. Some countries accept oral agreement but others like the United States rely on written documents to deem it legal. Because of the birth of the internet and the computers, powers of attorney sent over the internet or those that are electronically given are accepted in some states and also in some countries.
Remember though that regardless of the period stated on the contract, the power of attorney will be void once the principal dies. When they fall ill, become physically or mentally incapacitated, some power of attorney agreements are honored provided that they have the provision that the contract will still be valid when these things happen. Otherwise, they will also become void.
It is also assumed that the agent will be completely honest and truthful with his business dealings in representing the principal. When he is proven to be dishonest and fraudulent, all the things that he has signed when the power of attorney is still in effect will be deemed invalid.
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If you are considering getting a power of attorney, you should fully understand what it is all about. In general, it is a legal requirement that you be in a competent and normal state of mind when getting a power or attorney or appointing a person to be your attorney-in-fact. However, it could be very hard to prove that you are not well when you do so. It would be safe to get that document even if you are in the pink of health or even if you do not foresee any event that would make you unable to handle your affairs.
There are several frequently asked questions about this subject. It would be wise to be more familiar about power of attorney to fully understand how it could be of best use for you.
Do I need to appoint a lawyer as an agent?
The agent is also usually called the attorney-in-fact. You could appoint a lawyer as your agent. However, it is not a requirement. In fact, you could appoint just about anyone (in legal age) as your attorney-in-fact. The appointment and authorization should be clearly stated in the legal document (a power of attorney is actually a legally effective document).
How is the power of attorney created?
You need to completely fill out a specific power of attorney form. It should state yourself as the principal and identify the agent you are appointing to take authority on your affairs if you become unable to do so. Of course, it is a requirement that your appointed agent agree to take the authority you are giving. The document should be duly witnessed by a lawyer or a notary public. For the durable power of attorney, you should seek guidance from your private lawyer when doing the provisions or content of the document.
Is it possible to make a power of attorney if I get mentally incapacitated?
It is not in any way possible to do so. As mentioned, there is a requirement by law for you to fully understand what you are getting into for the document to take full effect. It is advisable that you make a power of attorney even if you do not feel any illness or you do not expect any event that would incapacitate your mental state. It is always ideal to be prepared.
Could the power of attorney be revoked?
Of course, it could be revoked especially if you are no longer comfortable about the kind of service or performance your agent is giving you. Be reminded that it is your right to revoke any authority you provide a person through a power of attorney anytime. You should accomplish a revocation form and distribute copies to all institutions and agencies that could be concerned with transactions, including hospitals and banks. Your agent should also formally receive a copy of that revocation.
As for the durable power of attorney, you could do two actions. First, you could get into a new durable power of attorney to name a new person as your attorney-in-fact or agent. Second, you could decide to handle all your own affairs.
Power of Attorney Related Articles
- An Insight On The Different Types Of Power Of Attorney
- Choosing an Agent for your Power of Attorney
- Choosing The Best Agent For Your Power Of Attorney
- Essential Information about Durable Power of Attorney
- Frequently Asked Questions about Power of Attorney
- How an Agent in Your Power of Attorney should Manage Your Money
- How Much Power of Attorney Should You Give to Your Attorney-in-Fact?
- Important Considerations When Creating a Financial Power of Attorney
- Medical Issues And Power Of Attorney
- Power of Attorney 101
- Power Of Attorney And Its Validity
- Power of Attorney: A Brief Overview
- Power of Attorney: Should You Get One?
- Power of Attorney: What to Consider in Choosing an Attorney-in-Fact
- Preparing for Your Future? Consider a Health Care or Medical Power of Attorney
- Seven Steps in Preparing a Power of Attorney
- The Pros And Cons Of The Power Of Attorney
- Types Of Power Of Attorney
- Understanding The Power Of Attorney
- Watching It: Power Of Attorney And Problems}
- What Is The Durable Power Of Attorney For?
- What Power of Attorney Is
- Why Do You Need to Prepare a Power of Attorney?