What is a Power of Attorney

A power of attorney is basically a written document that authorizes someone else to act on behalf of and as agent for you. If you make a power of attorney, you are commonly referred to as the principal. The person to whom you have given the power of attorney to act on your behalf is referred to as the attorney in fact or agent.

Your power of attorney can be a general power of attorney, which authorizes your agent to conduct your entire business and affairs. A limited or special power of attorney authorizes your agent to conduct specified business or perform a single act on your behalf.

What does it do?
Your power of attorney primarily serves as evidence to others of your principal-agent relationship created by your power of attorney. It also serves as an agreement between you and your agent regarding the business to be transacted under your power of attorney.

A power of attorney can be useful in a variety of situations. For example, a power of attorney could be useful when you do not have the legal capacity or the time to manage your affairs. It can also be useful if you are incapacitated, undergoing an operation or you are going away for a while. You may give a power of attorney to a real estate agent to manage, lease or sell your home or apartment.

For almost anything that you can do for yourself, you can give a power of attorney to someone to act on your behalf. This includes the power to contract, buy and sell property, sign checks, make deposits and withdrawals, settle claims, file lawsuits and almost anything else.

How does it work?
All your attorney in fact has to do is sign on your behalf: "John Doe, by Jane Doe, his attorney in fact." It's that simple. Sometimes, though, the power of attorney must be recorded at a county clerk's office for it be effective; this is often the case when the attorney in fact's actions involve a real estate transaction. In some states, the power of attorney must be notarized before it becomes effective. In other states, the principal must appear before a public official and state under oaths that he or she intends to give the power, knowing full well its consequences.
By their very nature, powers of attorney are serious documents that should be given careful consideration. Particularly with the broad general power of attorney, you should make certain your agent is trustworthy and competent.

When does it expire?
Generally, all powers of attorney terminate upon the principal's death. They also terminate if the principal becomes disabled, unless the power of attorney is "durable."