A Limited Power of Attorney is a legal document that grants an individual (the agent or attorney-in-fact) the authority to act on behalf of another person (the principal) in specific matters or for a limited period of time. This type of power of attorney is often used when the principal needs assistance with particular transactions or decisions but does not wish to grant broad powers.
The Limited Power of Attorney specifies the exact powers granted to the agent, which could include actions such as signing documents, managing financial accounts, or making healthcare decisions, depending on the principal’s needs. The scope of authority is clearly defined, and the agent’s powers are restricted to the specified tasks outlined in the document. For example, a principal may grant limited power to sell a specific piece of real estate or manage a bank account while they are out of the country.
It is important for the principal to carefully consider the terms of the Limited Power of Attorney and to select a trusted agent, as the agent will be entrusted with specific responsibilities that can have significant consequences. The document can also include an expiration date or be revoked by the principal at any time, as long as they are mentally competent to do so.
In Texas, including Houston and its surrounding areas, a Limited Power of Attorney must comply with state laws governing powers of attorney, including proper execution and notarization. This ensures that the document is legally enforceable and acknowledges the agent’s authority in the specified matters.
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