Rely on Wills & Trusts Now!! for all your Power of Attorney Needs in Royal Oak, MI
WHAT IS A POWER OF ATTORNEY?
A power of attorney is a legal document in which a person (the principal) designates and authorizes another person (the agent or attorney-in-fact) to transact business or make certain decisions on his or her behalf. When a power of attorney is in effect, the agent essentially steps into the shoes of the principal and makes decisions that are legally binding on the principal. Powers of attorney can grant broad, general authority (known as a general power of attorney) or they can limit the attorney-in-fact’s power to act on behalf of the principal to particular situations (known as a special power of attorney).
Here’s an example, if you are incapacitated in a coma for a long period of time, that person can then act on your behalf to sign important legal documents and they can also do things in regards to your finances and for your personal affairs. In this document you can list the things that they would be allowed to do. For example, list your home for sale, complete a re-fi on your home that had already been started, any banking transactions, access your safety deposit box, and also manage your financial accounts.
Did you know that just because you are incapacitated that doesn’t mean your spouse gets to sign on your behalf? Only the person you appoint through this POA can make that action for you with regards to signing documents on your behave.
You want to make sure that you have a very detailed POA. Make sure you lay out specific instructions as to how much power you want them to have. And if for some reason you die the POA is no longer a legal document. It can only be used when you are alive.