Power of attorney or POA is giving a person the authority to act on behalf of another person in all legal or financial matters. There are several different types of instances where power of attorney can be used. Some examples include:
General Power of Attorney
This type includes handling business transactions, financial, life insurance, settling claims, gifts, and working with business interests.
Special Power of Attorney
This type allows you to specify exactly which powers a person may exercise on your behalf. In most cases, this is used to handle certain affairs when you have other commitments or have health issues.
Healthcare Power of Attorney
This type allows you to give permission to another individual to make medical decisions in case you become unconscious, mentally incompetent, or unable to make decisions on your own.
The governing rule when it comes to a person’s or agent’s power over someone is that they are expected to act in your best interest.
Things POA cannot do:
- Make changes to a will
- Go against the best interest of the individual
- Make decisions on behalf of the principal after the individual’s death
- unless the individual has specifically named the person or agent to make decisions upon their death
- Transfer POA permissions to someone else.
- A person or agent only has the right to decline their appointment at any time, and they cannot appoint someone else of their choosing. Only those who have been named by the individual can be appointed.