A Power Of Attorney allows another person (the agent) to take specific legal actions on your behalf. There are different types of power of attorney, depending on your circumstances. You should select one of the following POAs:
General (Financial) Power of Attorney
With a general power of attorney, one person (known as the principal) permits another person (usually referred to as the agent or attorney in fact) to manage their assets and financial affairs while the principal is still alive.
Because this legal document grants the agent substantial power, the POA needs to list out clear instructions about what the agent can and cannot do. A clause can be added to terminate the power of attorney within a certain time frame.
The difference between a durable power of attorney and other powers of attorney is that if the principal becomes disabled or incapacitated in some way, the agent would still hold power--it doesn’t end. However, if you want your agent to continue to have power if you become disabled or incapacitated, make sure that your power of attorney explicitly states that it is durable.
IRS Limited Power of Attorney (Form 2848)
This form should be used when you require an individual to represent before the IRS. If you have ongoing legal proceedings with the IRS, it is best to use Form 2848 to allow an experienced tax attorney and/or accountant to present and negotiate the case on your behalf.
A limited power of attorney involves the principal granting specific powers to the agent. These powers are explicitly mentioned in the limited power of attorney.
For example, while the agent may be permitted to access a checking account to pay the monthly expenses of the principal, they may not have permission to make decisions related to medical care or retirement accounts.
Medical or Healthcare Power of Attorney
A medical power of attorney is more commonly referred to as a health care power of attorney (HCPOA). With a medical power of attorney, you’re creating a legal document that gives someone permission to make medical decisions on your behalf if you’re unable to do so. Your agent will have the ability to consent, refuse, or withdraw medical treatment, services, or procedures on your behalf.
It often costs several hundred dollars in legal fees to get a POA from a law firm. With FormSwift, you can create a power of attorney with a few simple steps.
After reading and understanding the aforementioned clauses, sign and date the agreement, certifying that you are granting permission to your Agent to make financial decisions and handle legal affairs on your behalf should you become unable or incapacitated.
Provide your name, and the name and contact information of your Agent. This should include your Agent’s full name, address, and county where he or she lives. Keep in mind that your Agent must be at least 18 years of age and be of sound mind.
After indicating the powers given to your Agent, provide your Witnesses. Most states require that your Durable Power of Attorney document be notarized and witnessed by two attesting individuals. Be sure that the following information is provided for each witness:
Full Address (including city, state and zip code)
The procedure and requirements for signing a power of attorney vary slightly in every state. Generally, your named agent must be at least 18 years old. Your agent may not act as a witness during the signing process. In most states, there’s a requirement for the signature of the Principal (you) to be witnessed by at least two witnesses. Some states require that the document be signed in front of a notary public.
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