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Explanation of a Power Of Attorney

You are not automatically an attorney if you are named as a power-of-attorney. To be named as a Power Of Attorney (POA), you don't have to be an attorney. A POA is a designation that gives you limited rights and options to act on behalf of another person, entity, or organization. POA appointments are common in estate plan - more bonuses.

A person who represents another person in court proceedings is called their attorney. Only licensed attorneys are allowed to represent other people in court matters. Although someone is referred to as the "attorney-in-fact", this does not automatically make them an attorney. To be appointed, a person does not need to be an attorney. They can have limited rights to make decisions for another person or manage their care.

This article is my opinion and not legal advice. I am a judge broker and not a lawyer. A lawyer can provide legal advice and a strategy for you if needed. A power of attorney agreement is a typical example of an agency relationship. The principal is the person or entity that authorizes, grants, and agrees to have certain rights represented. The agent (the power) is also involved.

Some of the principal's rights (power) are granted to the agent. These rights are granted to the agent until the principal dies or becomes incapacitated. There are many types of power of attorney, and one person may be able to fulfill multiple POA roles. These are some examples of POAs:

1) A general POA can be used to make financial and legal decisions.

2) A power of attorney can only be used for one transaction or for a short time.

3) A durable POA allows the principal to live on after death, which is useful for estate planning.

4) A financial POA can be very powerful because it allows the agent make all financial decisions on behalf of an incapacitated principal. A durable power of attorney is required by some financial institutions in addition to or instead of a financial power.

5) After the principal becomes incapacitated, a health or medical power of attorney is granted to the agent.

Although a POA does not require the attorney to act as an attorney, it is possible. Even if the paperwork is not to be drawn up, an attorney is often involved. Unless they are required by law or concern certain real estate transactions, power of attorney documents are not typically filed in court.

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