The General Power of Attorney enables a designated individual to perform specified tasks on behalf of another person. In order to do this, the principal must indicate what actions they would like the agent to carry out in their name. The actions must be listed in the form along with the principal’s signature to confirm that they are, in fact, assigning this individual to represent them. Many people wonder what the difference is between a general and durable power of attorney. Essentially, a general POA does not continue to hold validity once an individual is mentally incapacitated, whereas a durable POA will still remain active.
A general power of attorney is a document that can transfer concurrent financial authority to a designated individual. In other words, if somebody wishes to have a representative act on their behalf for matters related to their banking, property, benefits, and so on, they may appoint them using this written instrument.
Once an agent has been appointed, they will be able to function as the principal and perform any measures needed to accomplish the delegated tasks (sign documents, receive paperwork, make payments, etc.). What separates this contract from a durable POA is the fact that it ceases to continue once the principal becomes unfit to make their own decisions, i.e., incapacitated.
If you wish to provide another individual with general power of attorney for financial matters, look to the steps below to better understand the process.
When selecting a form to use, you should first consider some of the factors needed to create a viable document, such as:
The next step requires you to choose an attorney-in-fact that you feel will uphold their duty as a responsible agent. People will most commonly elect a:
This is the most important step in terms of how the principal-agent relationship will be carried out. Here, you will establish:
The principal party is required to supply the form with their endorsement in order to validate it. Most states will request that the signing occurs in the presence of a notarial officer and/or while being observed by witnesses. Some states will additionally require the attorney-in-fact to sign as well. (Check your state’s law to insure that all signatures are valid.)
Now that you have officially created a general power of attorney, it is important for you to furnish copies to your agent and any other applicable parties. It is also suggested that the principal preserve the original document for their own records.