For a variety of reasons, individuals may find themselves in a situation where they delegate their decision-making powers to another trusted person through a power of attorney (POA). This legal document effectively empowers the designated "agent" or "attorney-in-fact" to make crucial decisions, whether financial, legal, or health-related, on behalf of the "principal." This role often requires the agent to step in and act in the principal's stead, signing as POA to ensure such decisions are legally binding.
However, many people do not know how to sign legal documents such as POAs. In navigating this complex responsibility, the power of attorney template can be an essential tool in laying out the framework of the document.
Understanding how to sign as a power of attorney is fundamental as it defines the extent of your authority as an agent. There are several types of POA, each with its unique implications when signing as power of attorney:
General power of attorney: When signing as power of attorney under a general power of attorney, the agent is granted broad powers to act on behalf of the principal. This authority can encompass managing financial and business transactions, purchasing life insurance, settling claims, employing professional help, and more.
Special power of attorney: In the case of a special power of attorney, the scope is limited and specific. The agent's powers are clearly outlined by the principal, allowing only certain actions, such as selling a specific property, managing a distinct business transaction, or making particular health care decisions, when signing as power of attorney.
Durable power of attorney: Durable power of attorney is unique in that it remains in effect even if the principal becomes incapacitated. When signing as power of attorney in this circumstance, it becomes critical in those situations where the principal cannot make decisions due to mental or physical illness.
Medical power of attorney: Signing as power of attorney under a medical power of attorney grants the agent the power to make health-related decisions on behalf of the principal when they are unable to do so. This is a specific type of durable power of attorney
exclusive to healthcare decisions.
Each type has its particular use and implications when signing a power of attorney. Therefore, it is essential to seek legal advice on how to sign as attorney in fact to ensure the document suits the principal's needs accurately and legally.