What is a Power of Attorney?

What is a Power of Attorney (POA)?

A Power of Attorney (POA) or a Letter of Attorney (LOA) is a legal document by which a person (the principal) gives authorization to another person (the agent or attorney-in-fact) to act on his behalf. The authorized agent can be subjected to full or limited legal power to make decisions about the principal’s property, finances or medical care.

Kindly note that a POA should be prepared in advance of unlikely affairs. You cannot make a Power of Attorney after you become legally incapacitated because you need to sign and yourself must understand the nature and effect of the document.

When a Power of Attorney is used?

The power of attorney is frequently used in the event of illness or disability, or when you can’t be present to sign necessary legal documents for financial transactions.

Types of POA?

There are two kinds of POA: General POA (POA in short) and Enduring POA. While General Power of Attorney ceases to operate if the principal loses the mental capacity to make their own decisions, Enduring Power of Attorney continues to have its effects after that impaired capacity.

what is a Power of Attorney?
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