The Power of Attorney (POA) is a document with little power and much misconceived when it comes to handling legal or financial issues. Be it that you are preparing in advance in case of an emergency or just assisting your loved one with their affairs it is important to understand how POAs operate and the various types that are offered. We can simplify it down to a few words.
What Is a Power of Attorney?
A Power of Attorney is a legal document which permits one individual (the principal) to delegate the power to another individual (the agent or attorney-in-fact) to act on his or her behalf.
This may involve the signing of notarized documents, property management, bank accounts and even making medical decisions. The role of a notary public is crucial in this case as
verification of the signatures by the means of notarization must make the document valid and legally enforceable.
These are the four most important kinds of Power of Attorney that you should be aware of each having a specific legal or personal requirement.
1. General Power of Attorney
A General Power of Attorney (GPOA) gives broad powers to the agent to act on behalf of the principal in almost all matters—financial, business, and legal.
Common uses include:
- Real estate transaction management.
- Dealing with bank accounts and tax returns.
- Operating a business in the short term.
This power however, normally terminates in the case of incapacitation or mental incapacitation of the principal. This is why it would be of paramount importance so that the document could be notarized correctly by a trusted notary public in order to prevent any future conflicts.
2. Durable Power of Attorney
In contrast to the general one, the Durable Power of Attorney (DPOA) is not void when the principal is incapacitated. This renders it a valuable long term planning tool- particularly among the adults who are aged or those with severe health issues.
Key Benefits:
- Still takes care of your business in the event of disease or incapacity.
- Cardinalizes guardianship without the necessity of courts.
- Gives tranquility to the family and the principal.
In preparing a DPOA, it is possible to use the services of professional notary public so that each page will be signed, dated, and sealed properly, which is why it will be a strong document in courts.
3. Special or Limited Power of Attorney.
A Limited Power of Attorney is an authority that is conferred in a particular task or period.
For example:
- Giving another individual permission to sell a car in your absence.
- Giving an agent the freedom to sign real estate papers in your absence.
After the task is done, the POA automatics expires. It is an excellent choice when it comes to short-term requirements when you do not want to pass the entire control.
4. Medical Power of Attorney
A Medical (or Healthcare) Power of Attorney empowers an individual that you have entrusted to make decisions in relation to your healthcare in case you are not able to express your wishes.
Common duties are:
- Accepting or rejecting medical services.
- The choice of doctors or care facilities.
- Long-term care plan management.
In this sensitive document, it is strongly advised that it should be notarized. A notary public makes sure that the principal is signing voluntarily and he or she is aware of what he or she is signing.
The importance of Proper Notarization.
The even the most well written POA may lose its legal meaning unless it is notarized. A notary verifies the identity, makes sure no one is pressured and gives it an official seal- making a piece of paper a legally binding effect.
Without notarization, some banks, hospitals, or government offices may refuse to honor your
Final Thoughts
Making a Power of Attorney is not a piece of paperwork but a way of making sure that your affairs are in good hands in case you are unable to take care of them. The proper type can ensure that you and your loved ones are not stressed needlessly in the future due to the type selected and notarized by a certified notary public.
If you found this guide helpful, share it with someone who might need clarity on POAs—or visit our notary public services page to learn how easy notarization can be.