Written by Benjamin Kingsley

Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.

Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.

A power of attorney (POA) is a legal document that allows someone (the principal) to appoint another person (the agent or attorney-in-fact) to act on their behalf. There are two main types of POAs: general and limited. The key differences lie in the scope of authority granted to the agent.

A general power of attorney grants broad authority to the agent to act on behalf of the principal in a wide range of matters. This can include financial transactions, real estate dealings, business operations, and other legal affairs. The agent essentially has the same rights and powers as the principal to make decisions and take actions, with some exceptions like marriage or creating a will. General POAs are often used when the principal wants to ensure all their affairs can be handled if they become incapacitated or are unavailable for an extended period.

In contrast, a limited power of attorney (also called a special power of attorney) grants the agent authority only for specific tasks or transactions. The principal clearly defines and limits the scope of the agent’s powers in the POA document. For example, a limited POA might authorize the agent to sell a particular piece of real estate or manage a specific bank account. Once the specified task is completed or the defined time period expires, the limited POA typically terminates automatically.

It’s important to note that both general and limited POAs can be made durable, meaning they remain in effect even if the principal becomes incapacitated. This is a crucial consideration for estate planning purposes. Additionally, both types can be springing, which means they only take effect upon the occurrence of a specified event, such as the principal’s incapacity.

When deciding between a general and limited POA, principals should carefully consider their needs and circumstances. A general POA offers more flexibility but also grants significant power to the agent. A limited POA provides more control and specificity but may not cover unforeseen situations.

Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.

Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.