A power of attorney (POA) is a legal document in which an individual, called the principal, chooses to authorize another person to act on his or her behalf for any purpose spelled out in the document. It is commonly used to delegate the management of parents’ financial affairs to someone else, if and when they lose the capacity to manage their own affairs. This kind of power is commonly called a durable power of attorney, because it endures during the principal’s incapacity. The person to whom authority is given is called the agent or attorney-in-fact.
Remember that the agent doesn’t actually own any of the principal’s property. He only has the authority to make decisions regarding that property when the principal cannot.
Your loved one can cancel, or revoke, a power of attorney at any time by tearing it up, signing a new one or writing that she wants to cancel it.
Next ArticleRead This