Power Of Attorney; In Simple Terms
What is a power of attorney and how does it relate to us? A power of attorney is legally defined as a document that serves to grant a person the right to act in behalf of another individual, allowing the appointee to implement certain legal measures in behalf of the individual who executed the document.
Simply stated, this legal procedure allows anybody to have the authority to implement steps and decisions for the principal, or the person who authorized the power of attorney. The principal could also be termed to as the donor or grantor, while the one who was given the authorization or power, is the agent or donee.
What is it for? This particular legal document is often used when a person wants to pass on an important function or responsibility to someone that she or he perceives as a person who can be trusted, and also competent enough to effectively accomplish the said task.
Some examples of these roles and responsibilities are; organizing of stocks and savings, executing business decisions and signing contracts, handling tax accountabilities, selling or purchasing of assets related to real estate, opening insurance plans, organizing safety deposit boxes, and making significant decisions related to health care.
In addition, the range of decisions and duties where this legal document can apply, is dependent on the specific type of power of attorney being applied. Let us take for example, a health care power of attorney, as its name already implies, it is utilized when the principal is deemed to be incapable of making informed decisions for her or himself when it comes to matters like diagnostic procedures, surgical procedures, and other treatment methods.
A specific class of lawyers known as solicitors, have the power to implement the powers of attorney function, it is also within their scope of practice to educate and guide clients through the steps of creating and finalizing the document. It is here that they will have to clearly explain the pros and cons of entering into such an arrangement, as well as the coverage and restrictions of the document. And to ensure that you are making the right decision, it would be wise to pose all your questions regarding the subject, before you sign anything.
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Categories: Law, legal, Reference & Education:Legal
