Documentation - Powers of Attorney

Powers of Attorney
A Power of Attorney is a written document which one person (principal) uses to empower another person (attorney-in-fact) to act on his or her behalf. There are three basic types of powers of attorney, each serving a unique purpose:

  • General power of attorney – A general power of attorney authorizes someone to act on your behalf in different circumstances when you are unable to handle them.
  • Limited power of attorney A limited power of attorney, sometimes called a "special" power of attorney, authorizes someone to act on your behalf only in specific situations. For example, you may authorize someone to sell a specific item for you, such as a car.
  • Medical power of attorney A healthcare power of attorney allows you to appoint someone to make healthcare decisions for you. This is different from a living will, which only allows you to express your wishes concerning life-sustaining procedures.

All of these types of powers of attorney can be made durable. A durable power of attorney allows the attorney-in-fact to exercise the powers you give them even after you have become incapacitated. The death of the principal terminates a power of attorney whether or not it is durable. Another alternative is to create a "springing power of attorney." This power only goes into effect when you become disabled.

Trusts

You May Also Like

Related Articles
  1. Trading Strategies

    Adjust Market Strategies To Elevated ...

  2. Fundamental Analysis

    How to Create a Personal Risk Management ...

  3. Investing Basics

    Want to Beat the Market? Take on Some ...

  4. Trading Strategies

    Three Types Of Profit Protection Stops

  5. Professionals

    Worried About Stocks? Try on Convertibles

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!