Power of Attorney Letter Examples

By Louis Kroeck

A power of attorney letter is also called a power of attorney agreement or simply a power of attorney. These documents can be used for a variety of purposes but typically are used by one person to grant certain legal powers of representation to another. For example, an aging parent might sign a power of attorney giving his daughter the authority to pay his bills or make health care decisions on his behalf. A power of attorney document can take various forms, depending on the situation at hand.

A power of attorney letter is also called a power of attorney agreement or simply a power of attorney. These documents can be used for a variety of purposes but typically are used by one person to grant certain legal powers of representation to another. For example, an aging parent might sign a power of attorney giving his daughter the authority to pay his bills or make health care decisions on his behalf. A power of attorney document can take various forms, depending on the situation at hand.

Power of Attorney Defined

A power of attorney letter is a document that gives another party the legal right to take action on your behalf under certain circumstances. Some power of attorney letters only convey the power to act if the grantor is incapacitated; others grant unlimited legal power to make decisions on the grantor's behalf in financial affairs, health care, buying and selling property, signing contracts and handling matters related to government benefits.

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Health Care Power of Attorney

One example of a power of attorney letter is a health care power of attorney. This type of document gives your appointee the power to make health care decisions on your behalf if you are unconscious, mentally incompetent or otherwise unable to make your own medical decisions. One decision that might be granted under a health care power of attorney is the right to direct doctors to withdraw life support if the grantor lapses into an irreversible coma.

Special Power of Attorney

Another common power of attorney agreement is the special power of attorney. This document generally gives the grantee the right to conduct some particular business on behalf of the grantor. This type of letter might be used if the grantor expects to be out of the country and needs some transaction conducted on his behalf. A special power of attorney would specify what activities are to be performed, and it might also contain a clause stating when the power expires.

Revocation

Caution should always be exercised when using a power of attorney agreement or any legal document downloaded from the Web. Certain restrictions may apply in your state that would invalidate your power of attorney letter as a matter of law. Furthermore, granting someone power of attorney is a serious matter that requires careful consideration. It is always wise to discuss your options with a lawyer and have your legal documents professionally prepared or reviewed.

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Can a Power of Attorney Change Beneficiaries on Bank Accounts?

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What Are the Advantages & Disadvantages of Giving Someone Your Power of Attorney?

A power of attorney is a legal document that allows you to name someone you trust to make financial, business and legal decisions on your behalf. It provides a convenient means of having your affairs looked after when you are away or simply unable to do so on your own. The potential for abuse may outweigh the convenience of having an agent with a power of attorney.

What Is Financial Power of Attorney Abuse?

When you, as a principal, create a power of attorney, you give your agent a significant amount of authority to conduct transactions on your behalf. Since your agent has so much authority, it may be easy for him to abuse the power of attorney to act in his own best interests rather than yours. However, state laws can provide protection against abuses, and you can incorporate safeguards into your power of attorney to help deter abuse.

What Are the Disadvantages of Using a Power of Attorney?

While a power of attorney can be useful, you should consider some of the disadvantages of giving another person authority to act on your behalf. Giving power of attorney to a person you trust allows her to engage in actions and complete transactions for you. Your agent may do whatever you authorize her to do through your power of attorney document, including your banking transactions.

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