Power of Attorney
A Power of Attorney (POA) is a legal document that grants one person (the agent or attorney-in-fact) the authority to act on behalf of another person (the principal) in specified matters. This can include financial, legal, and medical decisions, depending on the type of POA established.
There are several types of Power of Attorney, including:
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General Power of Attorney: This type grants broad authority to the agent to handle a wide range of financial and legal matters, such as managing bank accounts, signing checks, selling property, and making legal claims.
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Limited or Special Power of Attorney: This type restricts the agent’s authority to specific tasks or decisions. For example, a principal may grant a limited POA for the sale of a particular piece of property.
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Durable Power of Attorney: This remains effective even if the principal becomes incapacitated, allowing the agent to continue making decisions on the principal’s behalf. It is important for individuals concerned about potential future incapacity.
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Medical Power of Attorney: This specifically allows the agent to make medical decisions for the principal if they are unable to do so themselves. This type often comes into play during health crises or serious medical conditions.
In Texas, a Power of Attorney must be signed by the principal and must comply with specific state laws to be considered valid. It is advisable for the principal to choose a trustworthy agent, as the agent’s decisions can significantly impact the principal’s affairs. When creating a POA, it is also wise to consult with an attorney to ensure that the document meets all legal requirements and accurately reflects the principal’s wishes.
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