What Is the Difference Between General Power of Attorney and Limited Power of Attorney?

By Marie Murdock

A power of attorney authorizes another person, referred to as your attorney-in-fact, to act for you, the principal, when you are unable, unwilling or incapable of acting on your own. The power can apply to a particular transaction or under a widespread host of circumstances. The type of power of attorney you execute will govern the types of transactions covered by it and often the time period during which it may be used.

A power of attorney authorizes another person, referred to as your attorney-in-fact, to act for you, the principal, when you are unable, unwilling or incapable of acting on your own. The power can apply to a particular transaction or under a widespread host of circumstances. The type of power of attorney you execute will govern the types of transactions covered by it and often the time period during which it may be used.

Powers

A limited power of attorney contains language that authorizes one or a few acts, often related to a specific event. For instance, if you are out of town frequently and have a vehicle for sale, you may appoint a trusted friend or family member as your attorney-in-fact to execute the bill of sale and vehicle title. A general power of attorney, on the other hand, covers a wide spectrum of acts that an attorney-in-fact may perform on a principal’s behalf and is often practically unlimited in nature.

Ready to appoint a power of attorney? Get Started Now

Specificity

A general power of attorney may make a broad statement regarding real estate transactions, whereas a limited one will be more specific. A general power of attorney may allow your attorney-in-fact to deal with any or all of your real property by selling, leasing or mortgaging it on your behalf. A limited specific power of attorney, however, must describe the action to be performed -- such as signing a mortgage or deed -- and must describe the particular parcel of real estate involved, usually with the legal description.

Expiration

A limited power of attorney may also establish an expiration date after which time your attorney-in-fact may no longer act for you. The powers granted may be few or many, limited only by the date stated in the document.

Activation Event

In some states, a general power of attorney may also establish a date when it becomes effective. You, as principal, may wish for your power of attorney to become effective upon some future event, such as your mental incapacity. These types of powers of attorney are often referred to as springing powers of attorney and are considered general, even though limited by their effective date. Some states have adopted a uniform power of attorney act which may invalidate most springing powers of attorney.

Ready to appoint a power of attorney? Get Started Now
What Should Be in a Power of Attorney?

References

Related articles

North Dakota Power of Attorney Laws

In North Dakota, you have the option of creating a power of attorney, or POA, to give another person the authority to act on your behalf when it comes to financial matters. These financial matters could include anything from that can access your bank accounts, who can pay bills or who can purchase or sell property. Under North Dakota law, the authority you grant may be as broad or as specific as you like, and you always have the option of revoking this authority at any time.

How to Obtain Power of Attorney in MA

A power of attorney is an instrument signed by one person, known as the principal, authorizing another, known as the agent or attorney-in-fact, to sign documents and/or perform actions on her behalf. The authority granted under a power of attorney can be broad or narrowly limited, depending on the intent. If you have been asked to be an attorney-in-fact for someone in Massachusetts, know that the appointment carries great responsibility to act in a trustworthy manor and in the best interest of the principal who appointed you.

Power of Attorney Rights

The power of attorney doesn't so much grant rights as powers. Under a power of attorney arrangement, one person -- known as the principal -- grants an agent the power to perform legal acts on his behalf. This grant of authority may be broad or narrow, and it may be of temporary or indefinite duration. A power of attorney must be in writing and signed by the principal to be valid.

Related articles

Selling Property & Limited Power of Attorney

Generally, a power of attorney document gives authority to another person, known as your agent or attorney-in-fact, to ...

How Long is a Power of Attorney Valid?

Not all powers of attorney are created equal. Many are created as general, durable powers of attorney that are intended ...

How to Transfer a Title With a Power of Attorney

An occasion may arise where you are appointed attorney-in-fact to transfer title to a vehicle using a power of ...

Power of Attorney Vs. Durable Power of Attorney

A power of attorney (POA) legally assigns authority to an agent to act on your behalf in matters that you specify ...

Browse by category