A limited power of attorney (POA) is a legal document that grants privileges to an agent and lets them engage in specific tasks on behalf of another person. Once agents complete the task the POA is revoked and there are no additional responsibilities.

People frequently arrange a limited power of attorney to permit agents to engage in financial transactions. These usually include handling personal or business finances; buying or selling real estate, investment products, or business assets; or taking over business management duties for the owner.

This kind of document limits the level of privileges granted. It\’s unlike durable or general power of attorney forms that grant broad powers. These sorts of documents allow agents to conduct nearly any kind of transaction a person would normally do on their own and the privileges can extend beyond death.

Instead, limited POA is utilized when agents only need to engage in a few transactions. For instance, a person owns a motor coach that is stored in another state, but needs to sell it. He could appoint an agent to show the motor coach to interested buyers and arrange the sale without the owner being present.

Another example is if a person becomes hospitalized and needs to authorize an agent to take care of paying their bills. Agents could be permitted to sign checks or pay bills using the Principal\’s credit card.

The limited power of attorney describes the kinds of transactions the agent is permitted to perform, along with the date their privileges expire. The time allotment can expire on a specific date or at the time when the transaction is completed. The person arranging the document, known as the Principal, can revoke privileges by executing a revocation of powers form.

The process for arranging power of attorney rights differ by state, so it is best to talk with a lawyer. Each kind of POA has to be signed by two witnesses that are unrelated to the Principal. Witness signatures are performed in front of a notary public who also has the sign the document and attach their notary seal.

Selecting an agent to take care of transactions requires careful thought. Obviously, agents need to be someone that is trustworthy and can be depended on to fulfill duties and conduct business in an ethical way.

Limited power of attorney allows agents to perform most kinds of transactions that the Principal would normally carryout on their own. These tasks can include: business or personal banking; handling transactions related to titled property such as automobiles and real estate; collecting outstanding debts; resolving issues pertaining to business or personal taxes; or establishing custodial care for minor children.

Anyone of legal age can arrange a limited power of attorney form. While it\’s unnecessary to hire a lawyer, it is recommended to have a lawyer review documents to make certain they are legally binding. Attorneys normally charge a small fee to review or create POA forms. However, the cost is worth it to ensure everything is in order and prevent problems from arising.

Setting up a limited power of attorney ensures that personal and business transactions can be carried out in a timely fashion. Personal finance expert, Simon Volkov talks about the different types of POA forms and their uses and how they can protect finances at www.SimonVolkov.com.

Setting up a limited power of attorney ensures that personal and business transactions can be carried out in a timely fashion. Personal finance expert, Simon Volkov talks about the different types of POA forms and their uses and how they can protect finances at http://www.SimonVolkov.com.

Author Bio: Setting up a limited power of attorney ensures that personal and business transactions can be carried out in a timely fashion. Personal finance expert, Simon Volkov talks about the different types of POA forms and their uses and how they can protect finances at www.SimonVolkov.com.

Category: Finances
Keywords: limited power of attorney,general power of attorney,power of attorney form,durable power of attorney