A power of attorney form is a highly recommended legal document which can serve a variety of purposes. In a nutshell, it is a legal document that gives one person the power to act as the authorized representative of another, even making decisions on their behalf. The person granting power of attorney is referred to as the “principal,” while the person being designated as the principal’s representative is referred to as his or her “agent.” Depending on it specific terms, a power of attorney may expire at some point in the future. Also, it can be revoked while the principal remains competent. There are two basics types of forms used for designating power of attorney: general and limited.

Standard Contents of the Form

The contents of such a form will vary from state to state as well as according to the scope of the power of attorney being designated. In fact, that latter factor usually makes up a large portion of the content of the form. Language specifying the extent to which representation is authorized, and for what purpose, and for how long, is all necessary in order to make sure such power is recognized and not exceeded. Of course, the signature of the principal and the agent are both also required. These parts are all universal. Additional requirements mandated by the state you live in will also be included.

Uses Of the Form

There are several ways to use a power of attorney form. Medical concerns are a quite common (and necessary) use. No one likes to think about this, but what happens if you are rendered unable to handle your own affairs, even temporarily? Insurance paperwork generally needs to be dealt with during such a time, as well as other types of transactions. Unless someone has been legally designated as your representative, many of these transactions can only be performed with your express authorization. With the appropriate legal designation in place, you won’t have to worry about any of that. You’ll be free to focus entirely on your recovery.

Variations On the Power of Attorney

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As we mentioned before, one type of power of attorney is called a general power of attorney. It renders the agent wide power over the principal’s financial affairs and must be signed by the principal while he or she is in full capacity and well aware of the consequence of such a decision. A limited (or special) power of attorney is, as its name implies, far more restrictive. It only affords the agent power to act on the principal’s behalf in specified manners, such as the sale of a home. These matters are specified on the form itself. A third variation is called a “springing” power of attorney. This one takes effect after (if) a specified event happens, or on a specified date.

Other Types

Though they aren’t used as frequently, there are indeed several other incarnations of the power of attorney form. One of these is the power of attorney for the care and custody of children. This one can give you a lot of peace of mind and save you and your loved ones a lot of money in the long run. Without such a form, should a custodial dispute arise in the face of your incapacity, guardianship proceedings will begin in the court. These can be both time consuming and expensive. Since you’ll have the manner taken care of in advance, you’ll be eliminating a lot of expense and headache for a lot of people.

Health Care Power of Attorney

As we’ve already alluded to, the health care power of attorney form is one of the most common types. It is also known as a medical power of attorney or an advance health care directive. It actually serves two important purposes. First of all, it serves the purpose we’ve already discussed. That is, it allows you to designate someone to make decisions regarding your health care that aren’t already specified in the document itself in the event you become mentally and/or physically incapable of doing so. Secondly, it allows you specify your preferences regarding certain decisions ahead of time. We recommend that literally everyone make use of this particular type of power of attorney.

In the event that you were ever to become permanently unconscious, one of the decisions you’ll be able to specify in your health care power of attorney is whether or not you prefer the use of life support systems. Given the significance of such a decision, it’s best to be able to make it while you’re in optimum health, both physically and mentally. That’s why we again want to stress the fact that you don’t need to be engaged in dangerous activity, elderly, or in poor health in order to craft this document. We strongly suggest you avail yourself of the opportunity to do so long before any of these.

Financial Power of Attorney

The second most common type of power of attorney form is the financial power of attorney. In this case, the agent still has the obligation to conduct business in the best interest of the principal. The agent is not authorized to override the wishes of the principal, only to act in his or her stead. A financial power of attorney does not authorize the agent to make health care decisions on behalf of the principal. It only works, as its name implies, in regards to financial matters. Therefore, you shouldn’t make the mistake of assuming that just because you have a financial power of attorney in place you’re covered in terms of health care decisions.

In Summary