Power of Attorney is a legal instrument that is commonly used in business and also by individuals. In the event of absence, illness or disability, a person can use the Power of Attorney, specifically to delegate legal authority to another trusted person. The person who signs (executes) a Power of Attorney is called the Principal. The power of Attorney gives legal authority to another person (called an Agent or Attorney-in-Fact) to make property, financial and other legal decisions for the Principal.

A Principal can give an Agent broad legal authority, or very limited authority. The Power of Attorney is frequently used to help in the event of a Principal’s illness or disability or in legal transactions where the principal cannot be present to sign necessary legal documents.

There are different kinds of Powers of Attorney: “Nondurable,” and “Durable” Power of Attorney. A “Nondurable” Power of Attorney takes effect immediately. It remains in effect until it is revoked by the Principal or until the Principal becomes mentally incompetent or dies. A “Durable” Power of Attorney is actually a general, special or health care power of attorney that contains special durability provisions. If a person should become mentally incompetent while the Power of Attorney document is currently in effect, a durability provision will allow the document to stay in effect.

Power of Attorney is certainly a useful and sometimes necessary tool; however, it is important that an experienced attorney guides you through the process. A trusted attorney can protect your decisions, which can have far-reaching effects, not only on you and your business or personal property, but also on your successors.

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