Power Of Attorney

A power of attorney is a legal instrument that allows someone else, called an "Attorney In Fact," or your agent, to act on your behalf. A power of attorney can allow either a limited, or a large degree of authority.

Such an instrument gives the Attorney In Fact the authority to act for you regarding important matters such as selling your real estate, signing checks, paying your bills, and making purchases, making medical decisions, and transacting other business.

There are several types of powers of attorney. Each type grants a certain degree of authority and each has it's own functions.

It is up to you to make the decision as to who that person will be and how much authority that person will be allowed to use on your behalf.

Power of Attorney forms can be bought from stationary stores and on the internet, or you can contact an attorney for assistance. It has to be filled out correctly and your signature has to be notarized by a notary public.

• General Power of Attorney: Gives the authority to make decisions in all matters and to act accordingly.
• Durable Power of Attorney: Allows your Attorney In Fact to make healthcare and financial decisions for you. The Durable Power of Attorney gives the authority to make decisions up to, and after, a disability or mental illness.
• Special or Limited Power of Attorney: Limits the Attorney In Fact to certain specified acts.
• Medical Power of Attorney for Health Care: Gives authority to make decisions if you become mentally or physically unable to help yourself. It gives your Attorney In Fact the authority to speak for you if you go into a coma, contract alzheimer's disease, dementia, or other mentally debilitating diseases, or if you become to sick to make other health care decisions.
• Power of Attorney-Child Care: Gives the Attorney In Fact the authority to make decisions regarding the well being of a child, or children. Includes making living arrangements and other decisions that affect the health, education, and welfare of the child.

The power of attorney is a convenient way to manage financial affairs for parents, grandparents, or others when they are away or if they do not want to be involved in such affairs.

Under common law, a power of attorney terminates at the time of your death and the Attorney In Fact, or agent, can no longer act on your behalf. State laws regulate many of the acts regarding power of attorney status.

Finance Topic of the Month: Why Is It So Hard To Get Out Of Debt?