Financial Powers of Attorney

A Power of Attorney permits an individual (called an agent or attorney-in-fact) to act on behalf of another person. There are two board types of financial powers of attorney: General Powers of Attorney and Limited Powers of Attorney.

 

A General Power of Attorney, like its name implies, gives an agent the immediate authority to handle financial affairs with little or no restrictions. General Powers of Attorney are often written as “durable,” meaning that an agent can continue to act after incapacity, although the authority to act ends at death. Some states permit the use of a General Power of Attorney that is “springing” so that agents can only action upon incapacity.

 

A Limited Power of Attorney gives an agent a limited or special authority to perform certain acts, such as handling a real estate closing and addressing tax matters.

 

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