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A Special Power of Attorney or Limited Power of Attorney is an important legal document that allows or authorizes the person you name (your Agent, "attorney-in-fact") to perform a particular transaction. The Special Power of Attorney would restrict the authority of the Agent to a specific situation, limited time period or type of legal action.
Generally a Special Power of Attorney is used for the sale of real or personal property, but it can cover any specific situation or need that may exist. If someone has moved out of state and wants to sell their house without returning to the state they left just to sign the real estate documents to close a transaction, they may grant a Special Power of Attorney only for that purpose.
There are two types of Special Power of Attorney – Durable and Non-Durable Powers of Attorney.
The powers you grant in Special Durable Power of Attorney will remain effective even if you become disabled or incompetent.
On the opposite, the powers you grant in Limited Non-Durable Power of Attorney will terminate in case you become disabled or incompetent.
Limited Power of Attorney is valid for the time period you specify in it, or until you revoke this Power of Attorney.
By issuing the Special Power of Attorney you allow another person to do almost all legal actions which you can do yourself. The following are just a few examples of powers you can grant to your agent:
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borrow money at an agreeable interest rate, to add and remove from a bank vault or a deposit box;
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to put and move the money from/to your accounts and to make other bank transactions on your behalf;
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to buy, sell, enlarge, reduce, and terminate a business interest;
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to buy or sell real estate;
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to make transactions with your tangible property, like household items, boats or cars;
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to sign your paychecks;
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to make any legal claims;
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to perform custodial duties for your children, including housing and schooling decisions;
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to make decisions regarding children’s emergency care;
These powers are explained more fully in the uniform statutory form Power of Attorney act, which expressly permits the use of any other or different form of Power of Attorney.
No one can guarantee you that the Power of Attorney that you sign will not be misused. So, please be careful in choosing an agent because you will be legally responsible for the acts of your agent.
The Limited Power of Attorney must be dated and acknowledged before a notary public. Please note that some financial institutions, like banks, require the Power of Attorney be recorded.
If there is anything about this form that you do not understand, you should ask a lawyer to explain it to you.
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Please read more related useful information:
Power of Attorney Facts
Power of Attorney News
Frequently Asked Questions
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