What is a General Power of Attorney? - YouTube

a general power of attorney is used by an individual who would like someone

else to have specific or unlimited control to make financial decisions on

their behalf until their death or incapacitation

unlike the durable version is a general power of attorney does not remain valid

if the principle should become in a mental state where they can no longer

make rational decisions for themselves such as being in a coma alzheimers

disease vegetative state etc a general power of attorney could be used in case

of incapacity inconvenience unavailability or when a person may not

be able to handle her day-to-day financial affairs a general power of

attorney allows an individual to give someone else the power to act on the

individual's behalf to manage financial or other property matters without the

need for expensive and time-consuming court proceedings the person who

executes a power of attorney is typically referred to as the principal

the party the principal of points to make financial and property decisions is

generally referred to as the agent or attorney in fact an agent may act only

to the extent eyes in the power of attorney for example a power of attorney

that is prepared as part of an estate plan is typically drafted broadly to

allow the agent to take as many actions as the principle may require a general

power of attorney grants many benefits including but not limited to authorizing

an agent to act on behalf of a principal allowing the principal to choose the

agent the principal may choose which powers to grant to an agent or otherwise

customize the agents powers to fit the principal's particular needs

requirements for a general power of attorney to be valid for a power of

attorney to be effective the principal must have the requisite capacity to sign

the power of attorney document the document must be executed with the

proper formalities the document must contain specific required language an

appropriate agent must be appointed and accept the appointment requirements for

the principal and the agent in a general power of attorney

the principal must have the capacity to enter into a contract therefore

principal must have the ability to understand the nature and consequences

of executing and granting the power of attorney an agent on the other hand

should be a person capable of making financial decisions and who is willing

to act on behalf of the principal a principal should consider the following

to appoint an agent trustworthiness financial experience management of

personal finances geographic location an agent acting on behalf of the principal

owes the principal a duty of care regarding property and financial matters

the agent must act as a prudent person agents liability under a general power

of attorney a general power of attorney creates a fiduciary relationship between

the principal and agent a fiduciary duty requires the agent to act with the

highest standard of care if the agent violates the standard of care the agent

is liable to the principal should an agent always be compensated only if the

principal has opted to provide compensation in the general power of

attorney document an agent is entitled to compensation for expenses incurred

while acting under a general power of attorney the agent can generally only

exercise authority that is specifically granted in the power of attorney a power

of attorney may cover the most common types of financial property banking and

estate transactions an acting agent may resign by giving written notice to the

principal the principal can also provide for a different means of resignation in

the power of attorney itself termination of a general power of attorney a general

power of attorney terminates when the principal dies or is determined to be

incapacitated there is a co agent available to serve and the original

agents Authority terminates the purpose of the power of attorney is accomplished

the power of attorney is revoked by the principal or a court order revokes the

power of attorney a principal can revoke a power of attorney for any reason at

any time the creation of a new power of attorney does not revoke a prior power

of attorney writing a letter stating the desire to

revoke a power of attorney should be enough to revoke the document a

principal may wish to revoke a general power of attorney because the agent is

no longer trustworthy the relationship between the principal and the agent

changed the agent moved far away the purpose of the power of attorney has

been fulfilled