What is a Durable Power of Attorney?
A Durable Power of Attorney document allows the person signing it (referred to as a
'Principal') to designate one or two individuals (referred to as an 'Attorney-in-Fact') to legally
conduct or engage in business on the Principal's behalf.
The Attorney-in-Fact can conduct almost all types of business on behalf of the Principal,
including buying, selling, or transferring property, signing documents, purchasing assets,
opening bank accounts, buying stocks, etc.
This business is conducted in the name of the Principal, with money, property, or other
assets owned by the Principal.
This Power of Attorney document only authorizes a business to be conducted as it relates to
assets and property; it does not authorize any healthcare decisions. Standard Legal offers a
separate Living Will software title on its website to create a healthcare power of attorney.
THIS IS A VERY POWERFUL LEGAL DOCUMENT. Once this document is signed, witnessed, notarized, and provided to the person(s) named as 'Attorney-in-Fact', those persons will have the ability to conduct almost ALL business on behalf of the Principal (again, from opening and closing bank accounts to selling the Principal's real estate or personal property to obtaining loans and placing mortgages on property, etc.).
As such, the person(s) named as 'Attorney-in-Fact' must be completely trustworthy and have only the best interest of the Principal in mind.
This document is effective regardless of the current physical or mental condition of the
Principal (provided that the Principal had the proper mental capacity to grant the authority at the time the Power of Attorney was signed). This document has no expiration (thus the
designation 'Durable'). Once signed, the Attorney-in-Fact holds that power until it is revoked in writing, and at that time this document should be returned to the Principal.
This form is GENERAL in nature; it is drafted to meet the most common situations or
circumstances where this form is required.
What is a Limited Power of Attorney?
This document allows the person signing it (referred to as the “Principal”) to designate an
individual referred to as an “Attorney-in-Fact”) to conduct specific business for the Principal.
This specific business is stated in the Power of Attorney document. For example, the Principal
can appoint the Attorney-in-Fact to buy, sell or transfer property, sign agreements, purchase
assets, open or close a bank account, buy or sell stocks, transfer a 401(k) account, etc.
This document differs from the Durable Power of Attorney in two ways: 1) The authority
granted under this document is limited to the tasks, business or transactions specifically stated
in the document; 2) The authority granted under this document can be limited in time, meaning
that if the action or business is not taken by the date set forth on the document, the authority of
the Attorney-in-Fact ends.
This document is used when the Principal cannot take certain actions on their own because of
physical health issues, the Principal is unavailable to conduct the business or because it is
more convenient to appoint a third party to conduct the business.
THIS IS A VERY POWERFUL LEGAL DOCUMENT. Once this document is signed, witnessed, notarized and provided to the person(s) named as 'Attorney-in-Fact', those persons will have the ability to conduct almost ALL business on behalf of the Principal (again, from opening and closing bank accounts, to selling the Principal's real estate or personal property, to obtaining loans and placing mortgages on property, etc.).
As such, the person(s) named as 'Attorney-in-Fact' must be completely trustworthy and have only the best interest of the Principal in mind.
This document is effective regardless of the current physical or mental condition of the
Principal (provided that the Principal had the proper mental capacity to grant the authority at the time the Power of Attorney was signed). This document has no expiration (thus the
designation 'Durable'). Once signed, the Attorney-in-Fact holds that power until it is revoked in writing, and at that time this document should be returned to the Principal.
This form is GENERAL in nature; it is drafted to meet the most common situations or
circumstances where this form is required.