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Posted on July 28, 2022 in asset protection
The term power of attorney or POA refers to a legal authorization form that gives your agent, also known as your attorney in fact, the power to act for the you the principal. There are two main types of power of attorney, financial and health care, both provide the agent with general or limited powers.
A power of attorney is a legal document that involves the agent, and you the principal. It is used in the event of your temporary or permanent illness or disability, or when you can’t sign necessary documents. You must choose a POA who you trust to handle your affairs for you. Every state has different rule for the forms. Some need unrelated witnesses and a notary. Check what your states rules are or see an attorney.
Most POA documents authorize your agent to represent you, the principal, in all property and financial matters as long as your mental state of mind is good. If you become incapable of making decisions for yourself, the power of attorney ends.
A power of attorney can end for several reasons, such as when the principal revokes the agreement or dies, when a court invalidates it, or when the agent can no longer carry out the responsibilities outlined. You can only sign a power of attorney when you are capable of making the decision for yourself. For the best guidance, contact an attorney in your state to help with the process.