A Power of Attorney (POA) is a legal document that gives someone else the authority to act on your behalf. The person who creates the POA is referred to as the “donor” or “principal,” and the person who is given the authority is referred to as the “donee” or “attorney”. The authority granted by a POA can be very broad or very limited, depending on the terms specified in the document.
There are three main types of POA:
- General Power of Attorney (All affairs): This type of POA gives the attorney broad powers to handle the donor’s financial affairs, including the ability to buy and sell property, manage bank accounts, and make investments.
- Specific Power of Attorney: This type of POA gives the attorney powers to handle the principal’s specific affairs, such as selling a property, buying a property a car, etc.
- Lasting Power of Attorney (LPA): This type of POA remains in effect even if the donor becomes mentally incapacity, ie. lacks mental capacity, allowing the donee to continue to act on the principal’s behalf.
In making a POA, it is important to consider the validity period of the POA, usually for a period of months or years, and whether it can be revoked within that stipulated period.
It’s important to note that a POA is a serious responsibility and should only be given to someone whom you trust completely. It’s also a good idea to consult with a lawyer before creating a POA to ensure that it complies with the laws of your country and properly reflects your wishes.