Power of attorney is a legal term that you might often hear but wonder what it stands for and what it can do. This is a legal document that is designated to someone that gives them the right to act on behalf of another person, if the latter is unable or incapable of doing so. So, what does becoming the power of attorney mean? And how do you use it, and for what purpose?
As mentioned earlier, a power of attorney (POA) is a legal document that appoints someone to manage the affairs of another person who is incapable of doing so. It could be that the person is geographically inhibited to execute a particular legal action and someone can step in on their behalf to execute this legal action.
There are various circumstances that might warrant someone becoming the power of attorney for another person. Physical and mental incapacity is the most common reason for granting the power of attorney, but this is not the only applicable circumstance. Many of those who work overseas can also grant this legal power to their family or loved one so they can handle their affairs while they are away.
Essentially, someone who becomes the power of attorney for someone else is given the authority to make important decisions on behalf of the person who granted that power. The person who is granted the POA is called a proxy or attorney-in-fact.
Most POAs become effective immediately after the attorney who oversees this process has signed the legally binding document. In some cases, the authority is only granted to someone if the conditions stipulated in the document are met, such as when the person that assigns the POA is no longer capable of managing their affairs due to health conditions, and so on.
A POA is a powerful legal document because it assigns authority to someone to make important decisions regarding the financial, legal, and medical affairs of another person. This can also be used for various transactions such as banking, real estate, healthcare, and government benefit transactions. This is why the POA is often granted to a family member, such as a spouse, children, or sibling. This means that you trust someone enough to give them the authority to make decisions on your behalf, such as managing assets and properties.
What does it mean to become someone’s power of attorney? There are several steps that must be followed in order to execute this legal document and have it take full effect.
These are some of the steps to becoming the power of attorney for a parent or a loved one:
The Power of Attorney might seem like a powerful legal document, and it is. However, like most other legal powers that are vested on certain individuals by the court, there are also limitations to its use.
It is essential that the document be signed and executed before it can take full effect. No decision or action must be executed by the agent before this document is executed.
It is also specified that becoming a power of attorney will require someone to meet certain requirements. For example, the agent must be over the age of 18 and of sound mind.
There is more than one type of power of attorney that might be granted to someone. It is important to know the different types in order to distinguish the legal power that is granted to someone who is awarded this legally binding document.
If you have any questions on becoming the power of attorney and what you can do with it, it is best to consult with a legal expert such as an attorney. They are in the best position to answer your questions with regard to executing and using a power of attorney.