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.
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