Power of attorney is a legal document that allows someone to take a decision in absence of you or when you are not able to take your own decision.
A power of attorney gives you the authority to act on your behalf in specific matters. It can be used to authorize someone to handle a variety of things, including making decisions about your finances, getting health care or ordering legal documents such as financial statements and taxes. A power of attorney may be limited to a particular activity such as closing the sale of your home, giving temporary or permanent authority to manage that activity or specify the rights and duties of others in certain situations. If you’re worried about outliving your assets, a power of attorney can help ensure that your family is provided for after your death.
4 types of Power of Attorney:
- General Power of Attorney. …
- Durable Power of Attorney. …
- Special or Limited Power of Attorney. …
- Springing Durable Power of Attorney.
Who will make decision when no one have power of attorney?
If you have not given someone authority to make decisions about your health, care, and living arrangements, then decisions about those matters will be made by your care professional. Sometimes your life, care, and living arrangements can be in the hands of a power of attorney. If you do not have someone to make decisions for you, then your health, care, and living arrangements will be managed by your doctor or social worker.
You decide how much or how little authority you give to your agent, including the types of tasks he or she may perform. A broad scope of tasks allows you to delegate as many tasks as necessary while still giving your agent the legal authority to act on your behalf:
- Handling transactions at financial institutions.
- Paying your bills.
- Negotiating and signing contracts.
- Hiring and firing people that work for you.
- Buying and selling stocks, bonds and other securities.
A person who has more than one adult child, or who has been appointed an agent to handle all their financial affairs, should have at least one agent or co-agent. In some cases, an appointing person is allowed to appoint a single agent to manage all their affairs. This chapter considers the common situations that arise when more than one person is appointed as a partner of a deceased person’s estate and how such agents can work together to serve the needs of the heirs and beneficiaries.