Limited power of attorney

Limited power of attorney
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Limited power of attorney is a legal document which is used when you need someone to act in your stead for a limited time only, or for just one purpose. This document specifies the precise areas of oversight, allowable decisions and actions, and often the period of time in which the agent will represent you[1].

A power of attorney is a legal document by which you can appoint and authorize another person (usually a trusted friend, family member, colleague or adviser) to act on your behalf and to legally bind you in that respect[2].

The limited power of attorney is appropriate for completing a certain transaction that must take place without your physical presence. Through a limited power of attorney, you might designate an attorney-in-fact to handle transactions relating to a particular portion of your business, or you might complete the form to provide for financial management for a limited period of time. There are many instances in which naming your representative for a period of time or only for certain aspects of your affairs can be useful[3].

This document is annulled in the event of your incapacity, incompetence, or death. It is also annulled if you divorce[4].

Example of using limited power of attorney

The limited power of attorney is drafted for a specific purpose and a restricted period of time. For example, when a homeowner is buying a vacation home and is unable to attend the property settlement (when the purchase documents are signed), she might give a limited power of attorney to her realtor. In this case, her agent or attorney in fact signs all the legal paperwork required to purchase the vacation home on her behalf. After that one incident, the power of attorney is terminated[5].

List of power of attorney types

There are several types of list of power of attorney[6]:

  • General Power of Attorney - specifies certain areas of financial affairs to be managed by an attorney-in-fact.
  • Unlimited Power of Attorney - assigns all areas of your financial affairs to an attorney-in-fact.
  • Limited Power of Attorney - specifies certain areas of your financial affairs, or certain transactions or prevailing conditions, or certain periods in which an attorney-in-fact is authorized to represent you.
  • Power of Attorney for Real Estate - designates a representative to act in your place as parent or guardian for the purpose of childcare, in temporary situations.
  • Power of Attorney for Childcare - assigns responsibilities for your financial affairs to an attorney-in-fact, to be effective either continuously (despite your incapacity), or to become effective (upon your incapacity).
  • Durable Financial Power of Attorney - names a chosen representative to serve as advocate for your interests in the event you become unable to make decisions due to medical reasons.

References

Footnotes

  1. Ashar L. C. (2010)
  2. Enodare (2011)
  3. Ashar L. C. (2010)
  4. Ashar L. C. (2010)
  5. Friedberg B. (2015)
  6. Ashar L. C. (2010)

Author: Piotr Tarsa