Byline General Power of Attorney Template Made Easy

Esign general power of attorney template

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