Understanding the Purpose of Power of Attorney

Completing Power of Attorney forms ensures that someone is able to make decisions on your behalf when you are not present or able to do so. When you grant another person Power of Attorney, you are the “principal” and the person who is authorized to act for you is your “agent” or your “attorney-in-fact.” An agent with General Power of Attorney can make a broad spectrum of decisions on behalf of the principal. An agent with Special Power of Attorney, however, has authorization to act only in particular situations as specified in the legal document.

There are several different types of Power of Attorney. An agent with General Power of Attorney is able to make decisions on behalf of the principal in situations ranging from business to medical  to financial. Individuals who are going to be away for an extended period of time often designate an agent to act on their behalf during their absence.

Many individuals name someone as their agent for healthcare and/or financial matters in the event that they become unable to make their own decisions. This type of Power of Attorney can be general or specific, but must also be durable. A Durable Power of Attorney is one that remains in effect if the principal becomes incompetent or is otherwise incapable of handling his or her affairs.

You will find the forms you need to take care of your Power of Attorney needs on RocketLawyer.com. Depending on the choices you make in the free online interview, your document will appropriately be made general or specific, durable or non-durable.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.