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This article explains the use of power of attorney and how to revoke an existing power of attorney and legal will by virtue of revocation deed. Power of Attorney A power of attorney is a legal document wherein one person (the principal) appoints another person or organization to act as an agent on his or her behalf. The principal delegates his authority to the agent to perform certain acts or functions on his behalf. The person or organization you appoint is referred to as an "Attorney-in-Fact" or "Agent." Purpose of Power of Attorney A power of attorney enables a principal's affairs to be managed by a person of their choice when they are unable to conduct them personally, such as if they are ill, travelling overseas or become mentally incapacitated. A power of attorney will usually end either at a specified time or upon the request of the principal at any time using a deed of revocation and will automatically be revoked if the donor loses mental capacity. We will come to revocation shortly. In What Situations General Power Of Attorney Applies? You have to decide one or more of the following tasks that your attorney-in-fact will carry out on your behalf from time to time: - manage your properties - preparing and filing income tax returns - making decisions regarding health care - do transactions at the bank and pay your bills - handle your retirement and insurance benefits - collect your social security benefits - handle your legal claims You have two options when deciding how much authority you are going to allow to your agent. You can give either general or a limited power. The right choice depends on your needs and preferences when it comes to managing your affairs. A "limited" power of attorney grants an agent the authority to act for the principal in a particular matter or during a specific time period. With a limited power of attorney, an agent would not have any more authority to act for the principal than what is stated in the document. A general power of attorney usually grants an agent broader authority to act on behalf of the principal. For example, a general power of attorney form can grant an agent the authority to endorse checks and other instruments payable to the principal, pay bills and borrow money on behalf of the principal, and provide the agent with access to the principal's safe deposit box. Powers of Agent/Attorney These powers usually include: Handling banking transactions Entering safety deposit boxes Handling transactions involving U.S. securities Buying and selling property Purchasing life insurance Settling claims Entering into contracts Exercising stock rights Buying, managing or selling real estate Filing tax returns Handling matters related to government benefits You also have the option to grant the following additional powers to your Agent: Maintaining and operating business interests Employing professional assistance Making gifts Making transfers to revocable ("living") trusts Disclaiming interests (this has to do with estate planning strategies to avoid estate taxes) So if you would like to know how Net Lawman can help you create easy to understand and legally binding business documents or need any legal information about power of attorney contact us direct and speak to one of our expert advisors. Alternatively, browse our website to find out more about our range of services and document templates. Related Articles - legal documents, legal advice, egal agreements, business documents, legal document templates, legal form, Email this Article to a Friend! Receive Articles like this one direct to your email box!Subscribe for free today!
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