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What are the disadvantages of power of attorney?
Potential Disadvantages of Being a Power of Attorney If you bsignNow your duty, you could owe the principal compensation for damages. The principal could sue you if you did not act in their best interest. A POA could be held responsible if they sign an agreement that could hold them financially liable.
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What is the difference between a POA and a durable POA?
However, a general power of attorney only operates while you are still coherent and mentally capable. It automatically expires upon incapacity or death. A durable power of attorney remains operational upon incapacity, although it expires upon death.
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What is the strongest POA?
The Durable Power of Attorney A Durable POA remains effective even if you become incapacitated. This type of POA ensures your agent, whether for financial or healthcare , can continue to act on your behalf if you are unable to do so.
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What responsibility comes with power of attorney?
A POA creates a “fiduciary relationship” between you and your agent. A fiduciary relationship is when one person is legally obligated to act in the best interests of another person. That means they're responsible for making decisions for you, in the way you would want those decisions to be made.
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What is the best choice for a power of attorney?
Since your power of attorney potentially will be handling your legal and financial affairs, you'll want to choose someone who either has some experience in these fields or has the personality and financial savvy to handle the decisions that may fall to him or her. Choose someone who: Is trustworthy and fair minded.
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What does power of attorney give you authority over?
A power of attorney gives one or more persons the power to act on your behalf as your agent. The power may be limited to a particular activity, such as closing the sale of your home, or be general in its application. The power may give temporary or permanent authority to act on your behalf.
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Which is the best power of attorney?
You can limit the power you give to your attorney – for example, you could allow them to deal with your bank account but not your property. An OPA is useful in certain situations, but it's usually best to create an LPA instead as your attorney can continue to act for you if you ever lose mental capacity.
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What is the best power of attorney to have?
For most people, the best option is to have a general durable power of attorney because it gives your agent broad powers that will remain in effect if you lose the ability to handle your own finances. An attorney can customize a general POA to limit powers even more—or add powers, Berkley says.
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