Power Of Attorney
A Power of Attorney is a document that is used to appoint someone to make property, financial and other legal decisions for another. The person who signs a Power of Attorney is referred to as the Principal and the person who acts on behalf of the Principle is referred to as the Agent.
A Principal may give an Agent either extensive legal authority, or very limited authority. The Power of Attorney is frequently used to assist in the event of a Principal’s illness or unavailability in legal transaction where the Principal cannot be present to sign necessary legal documents.
Types of Power Of Attorney
A “Nondurable” Power of Attorney takes effect immediately. It will remain in effect until it is revoked by the Principal, or until the Principal becomes mentally incompetent or dies.
A “Durable” Power of Attorney also takes effect immediately and enables the Agent to act for the Principal even after the Principal is not mentally competent or physically able to make decisions and is effective until revocation by the Principal, or the Principal’s death.
A “Springing” Power of Attorney becomes effective at a future time. That is, it “springs up” upon the happening of a specific event chosen by the Principal, and spelled out in the Power of Attorney. Often that “springing” event is the illness or disability of the Principal.