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POWER OF ATTORNEY
An ordinary power of attorney is a legal
document, signed by a competent person, which gives another person the
authority to handle some or all the first person's affairs. The first
person is called the "principal." The individual acting on behalf of the
principal is called the "agent" or "attorney-in-fact" (although he or she
need not actually be an attorney). Powers of attorney are usually
prepared by lawyers.
A power of attorney may be very limited,
covering a single transaction or event. A power of attorney also may be
very broad, giving the agent decision making power over all aspects of
your financial and personal life.
A power of attorney is only valid if the
principal was mentally competent when he signed it, and powers of attorney
generally end automatically when the principal dies or becomes
incapacitated. In addition, the power of attorney itself may specify when
it shall end -- such as the occurrence of an event (e.g., "This power
shall remain in effect until I return to my residence from my trip to
Paris.") or a certain date (e.g., December 25, 2008). |
