General Power of Attorney

Individuals will often choose to have a general power of attorney if they do not have the time or knowledge to handle their specific financial or legal needs. If you travel often, it may be helpful to designate an individual to sign or receive important documents on your behalf.

A general power of attorney is effective for your lifetime unless you choose to revoke it. However, their power will not continue if you are unable to make decisions on your own due to an injury, illness, or limited mental capacity. In order for power to continue, the person must be designated as a durable power of attorney.

There are different types of POAs, including general, specific, medical, or durable. When a person is designated a POA, they do not require any specific qualifications. However, hiring a professional may be a good idea if you own a particularly complex estate. Any person you trust can be designated as a power of attorney as long as they are of legal age and mentally competent.

A General Power of Attorney can be granted the same amount of power that you would have on your own. These may include things such as:

• Managing finances
• Real estate transactions
• Managing rental property
• Cashing checks or collecting debt
• Handling business transactions
• Purchasing or selling things
• Applying for benefits and insurances
• Handling government benefits and taxes
• Making transactions for estates and living trusts

• Testify on your behalf
• Vote in a public election on your behalf
• Create, change, or revoke your Will
• Designate someone else to become your Power of Attorney
• Render any services under contract
• Take over responsibilities that were designated to someone else

It is your general power of attorney’s fiduciary duty to act in your best interest. A violation of trust may result in civil or criminal punishment.

Following these steps can simplify the process of setting up a general power of attorney:

1. First, you will need to determine if you actually need a general power of attorney and what responsibilities you want to designate to them. These can be both financial and legal matters. If you only need someone to represent you for a short period of time, a specific power of attorney may be what you need instead.
2. Find the form online. Forms vary from state to state. Consult with an attorney first to determine what form meets your state requirements.
3. Select what power you want them to have. You will have the option to grant additional powers not covered or limit specific powers not mentioned.
4. Print and sign the document. Most states require these documents to be notarized. Some states will require one or two witnesses present. In some cases, this document will need to be formally recorded by the county. A local attorney will be able to address your specific needs.

Do you need help managing finances, business transactions, real estate, or anything else on a day-to-day basis? If so, then a general power of attorney may be the right choice. If you only need help for a short period of time, consider appointing a specific power of attorney instead.

A specific power of attorney, also referred to as a limited or special power of attorney, appoints an individual to work on your behalf for a specific transaction or for a limited amount of time. For example, if you plan to be out of the country for work or military service, but have a real estate transaction or large purchase happening while you’re away, you may appoint a person to sign and receive documents on your behalf. Their power automatically terminates at the end of that transaction or time period.

As with any legal document, review it with a local attorney to make sure that it meets your specific needs. Remember, you can make your general power attorney your durable power of attorney as well.

Unfortunately, if your documentation does not specify durable, general, and specific powers of attorney, it's terminated if you become incapacitated. Making a Durable Power of Attorney part of your Estate Plan will help you and your loved ones be prepared for the unexpected and avoid a potentially stressful situation in the future.

Contact a local expert to help you get started on the right path to set up a power of attorney today.