A Power of Attorney Explanation

The act of being named as a power attorney does not automatically make you an attorney – more about the author. A Power Of Attorney (POA) appointment does not require you to be an attorney. You have limited rights and choices when you are named as a POA. POA appointments are common when estate planning is involved.

An attorney can represent another person in court. A licensed attorney cannot represent another in court matters. A person is not an attorney just because they are called the “attorney of fact”. You don’t have to be an Attorney to get limited rights for someone to make their decisions or to manage their care.

This article contains my opinion, not legal advice. I am a judgment broker and not a attorney. Please contact a lawyer if you need legal advice or any strategy. A typical power-of-agent agreement creates an agency between the principal (the entity or person authorizing, granting and agreeing to have some rights represented) and their agent (the power).

The agent can obtain some of the rights granted by the principal. The agent is entitled to these rights until an event occurs, such as the death or incapacitation of the principal, or the cancellation of the Power Of Attorney (POA). There are several types of power-of-agents. One person can hold more than one POA position. Here are some examples:

1) A general POA includes both financial and legal decisions.

2) A limited power of attorney for a specific transaction is allowed or only for a specified time.

3) A durable POA gives the principal the ability to survive, which can be useful in estate planning.

A financial POA allows an agent to make all financial decision for the principal who is incapacitated. Some financial institutions may require a durable POA in addition or instead to a financial power.

5) A power of attorney for medical or health care allows the agent to make decisions about the principal’s health care after they are incapacitated.

A POA is not required to be an attorney. A POA is typically drafted by an attorney. Unless certain real-estate transactions are involved, powers of attorney documents cannot be filed at court.