Check Limited Power of Attorney Forms By State
When creating this legal document, the creating party must complete a few specific requirements and make sure that they have taken care of the following:
- Creators that wish to pass on responsibility must be mentally able to decide to pass on the right to make decisions to someone else.
- In most cases, the document must be completed in writing, signed by the creator.
- Once created, the document should be notarized by a notary public (not required in most cases but recommended).
- A person of choice should be appointed as attorney-in-fact, which is the one who will act on behalf of the Principal.
How to Fill Out a Limited POA
To fill out a limited POA, you’ll first need to make some preliminary arrangements and make sure that you select the person you wish to remain in charge. To help clear up any confusions that might come along when filling out a limited power of attorney, those creating the contract will need to:
Select Powers
This is perhaps the most critical part, requiring that you word your needs wisely when passing over the powers to someone else. It would be best if you clarified what the party you’re selecting can take charge of and specified the allotted time. If it is for a health issue or something that might last longer than your stipulated date, then an additional document will need to be compiled.
Choose Your Agent
After selecting the powers that you need to pass over, it is essential to think about who those powers will go to. This means considering those who you trust and those who will take care of the business you need help with. Think about who can professionally perform the desired activities, the way you want them to, without sacrificing your name or reputation.
Create the Document
After you’ve made the selection, it’s time to create your document. To do this, you can use the help of a free form or PDF that will guide you in including all of the necessary items. The specifics are usually marked on the form and explained in detail, so all you’ll have to do is follow along and fill out.
Sign and Seal
The last thing you and all parties will need to do is signing the limited POA. It is not required to notarize signatures for the most part; however, it is recommended to ensure that the document is legally valid. Besides the legally binding nature of the document, notarization can guarantee that the instructions given in the limited POA will be performed.
Put the Document to Use
Once all signatures are in place and everything is filed correctly, the document will go into effect. From this point forward, the chosen agent can act as the person specified on the document, signing documents for a specified period. As long as there is no type of abuse of power, agents can legally act as the noted person for the time specified in the document.
How to Revoke a Limited POA?
In some cases, there needs to be a change of plans regarding the limited POA. This could be due to a change that has happened in the agent’s or principal’s life. A few ways of automatic limited POA revocation include one of the parties’ death or an accident in which they are no longer capable of making sound decisions. Apart from that, creators can revoke their POA by:
- Changing the revocation date, which will void its validity on the date specified.
- Proving that the action needed by the agent and the representation that was required is completed.
- Creating a second form that will void the original limited POA, known as a revocation of power of attorney form.
In doing any of these three, the creator and chosen agent are freed of their duties. The agent’s signatures and decisions will no longer have any legal force in case the agent continues performing the duties specified in the limited POA.
Limited POA Use Cases
Life is unpredictable and can sometimes take us for a spin. This could be with anything from health, to unexpected deaths, to loss of jobs, and so on. We never know when the disaster strikes, often not realizing the preciousness and gifts we have from everyday health until they are in jeopardy. This uncertainty is what a limited POA attempts to manage, providing a person with the option to hand over the decision-making power to another in the case of any unforeseen circumstances. Limited POAs can be used for:
- An illness in which your full and mindful attention cannot be determined, allowing another person to step in and make decisions.
- A decision to allow someone to step in for a short period to apply their expertise in a particular area.
- Any other circumstance where a person may not be able to act in decision making, passing on the power to someone else that can get the job done.
Powers Granted
One of the central powers granted by a limited POA is the ability to sign and solidify a transaction on behalf of another person. Most of the time, these are used to manage and treat real estate and other finances, which requires a professional to take over and get the process done. The powers are granted to the person of your choosing that will take over some of the business. It means that for the specified amount of time granted to the chosen attorney, in fact, they will have the power to:
- Sign and date documents on behalf of the person who chose them, including financial, business, and other papers.
- Take over for any of the business that needs to be handled at that moment.
- Act in the place of the creator, taking over essential contracts and jobs.