Power of attorney
Power of attorney is a legal document that gives an individual the right to act on behalf of the one signing the document.
A Power of Attorney(POA) can be a general power of attorney or better, a restricted power of attorney, limited to acting on behalf of another to pay bills, deposit funds or limited ability to withdraw funds to benefit the grantor of the POA. The restricted powers can be limited as appropriate such as to a specifed transaction, to certains kinds of business (e.g., only real estate, only banking, only stock market transactions, etc.), to certain geographic areas (e.g., transactions in Europe) or for a specified period of time.
Restricted powers of attorney are attractive because of possible horror stories such as the individual empowered to pay bills who signs a contract to sell a major asset.
Kahuna, CFA Retired Venture Capital Portfolio Manager
Related Fool Articles
- How-to Guide: Plan Your Estate
- Planning for the Unthinkable
- Mortality Planning
- 7 Scary Documents You Must Have
Related Community Blogs
Recent Mentions on Fool.com
- Don't Even Think About Retiring Until You've Done These 5 Things
- How to Prevent Bad Financial Driving in Your Golden Years
- When Your Credit Report Says You're Dead (and You're Not), Act Quickly
- 5 Great Ways to Spend Your Income Tax Refund
- Will the Clean Power Plan Kill the Coal Industry?
- Personal Finance: 5 Areas You Can't Ignore