The Importance of a Power of Attorney Document

The Importance of a Power of Attorney Document

power of attorney documentA power of attorney (POA) document is extremely powerful. Before you sign a POA, it is recommended that you consult with an estate planning lawyer regarding same, in order to get a legal review of what it says and, most importantly, what it does.

Below you will find information regarding the two types of POA documents that are acceptable in Florida: a “general” or “durable” power of attorney and a “limited” power of attorney.

“General” or “Durable” Power of Attorney:

Exercise extreme caution when granting a “general” or a “durable” power of attorney. If one is presented to you, talk to an Orlando estate planning lawyer before you sign anything. This document gives the appointed agent very broad powers to perform any legal act on your behalf. If one is presented to you, it is recommended that you consult with an attorney so that you are aware of the powers you are granting to the appointed agent within the document.

For example, a person who is appointed as an agent under this type of power of attorney can gain control of the principal’s person’s assets, including bank accounts, real-estate, and other things of value. Additionally, the agreement may grant the agent with the power to sell or dispose of the principal’s assets without first obtaining the approval of the principal. This is a very powerful document which provides very broad powers to the agent, and therefore, it should be taken seriously.

Limited Power of Attorney:

A limited power of attorney document grants limited powers to the agent. In other words, the agent is appointed to perform a specific act. For example, a person may give a limited POA that is limited to one specific obligation or asset, such as the management of a single piece of real property. A special POA may be very detailed as to what the agent can and cannot do.

Conclusion

A power of attorney document is a very important legal agreement that needs careful thought, consideration, and the advice of qualified legal counsel. Never sign any POA without reading it completely and having it reviewed by an attorney before you sign.

Contact Nishad Khan P.L. if you need help with creating or reviewing a power of attorney document.

The Orlando Real Estate Attorneys at the Law Offices of Nishad Khan P.L. serve clients with Residential, Commercial, and Investment Real Estate Transactions. Let our expertise in Central Florida Real Estate help you.