POWER OF ATTORNEY
A power of attorney is a document thatallows you to appoint a person or organization to handle your affairs while you're unavailable or unable to do so. For example, when you are traveling out of the state or country or when you are physically or mentally unable to handle your affairs. It evidences the creation of a relationship between two people who are designated as the "principal" and the "agent". The principal designates the agent in the document, and the agent is authorized to act on the principal's behalf-- to stand in the shoes of the principal--for whatever business the power of attorney permits. A power of attorney can be general, so that the agent can conduct any sort of business on behalf of the principal, or it may be specific, limited to the transactions expressly provided for in the document. Powers of attorney are commonly used in all sorts of business activities, and are very frequently executed on behalf of individuals.
General Power of Attorney
A general power of attorney is very broad and provides extensive powers to the person or organization you appoint as your agent. These powers usually include:
- Handling banking transactions
- Entering safety deposit boxes
- Handling transactions involving U.S. securities
- Buying and selling property
- Purchasing life insurance
- Settling claims
- Entering into contracts
- Exercising stock rights
- Buying, managing or selling real estate
- Filing tax returns
- Handling matters related to government benefits
You also have the option to grant the following additional powers to your Agent:
- Maintaining and operating business interests
- Employing professional assistance
- Making gifts
- Making transfers to revocable ("living") trusts
Disclaiming interests (this has to do with estate planning strategies to avoid estate taxes)