What is a Power of Attorney?

A power of attorney (POA) gives one or more persons the power to act on your behalf as your “attorney in fact”. The power may be limited to a particular activity, such as handling contract negotiations for your business, or be general in its application. The power may give temporary or permanent authority to act on your behalf. The power may take effect immediately, or only upon the occurrence of a future event, Another important reason to draft a power of attorney is to prepare for situations when you may not be able to act on your own behalf due to absence or incapacity.

If you do not have a power of attorney and become unable to manage your personal or business affairs, it may become necessary for a court to appoint one or more people to act for you. If this becomes necessary, you may not have the ability to choose the person who will act on your behalf, leaving you at risk. Being proactive to create a power of attorney will avoid the state choosing an attorney in fact for you. A power of attorney additionally allows you to define the exact authority your attorney in fact will have and any limitations.

Common Types of POAs :