This form is a durable power of attorney. The form provides that the agent of the principal is only authorized to use the principal's funds for the best interest of the principal. If the agent fails to comply with principal's instructions, the agent then may be liable for criminal charges or civil liability.
A power of attorney document is a legal instrument that grants a person (known as the "principal") the ability to confer legal authority and decision-making power to someone else (referred to as the "agent" or "attorney-in-fact"). This document is crucial in situations where the principal may be unable to make decisions or handle legal matters independently. There are several types of power of attorney documents, each catering to different circumstances. The commonly known types include: 1. General Power of Attorney: This document gives the agent broad powers to act on behalf of the principal in various areas, such as managing finances, making business decisions, and engaging in legal transactions. It is often used when the principal is incapacitated or unavailable. 2. Limited Power of Attorney: Here, the agent is granted specific powers to act on behalf of the principal for a limited period or regarding specific matters. For example, it can be used when the principal is traveling outside the country and needs someone to handle their legal affairs temporarily. 3. Durable Power of Attorney: This document enables the agent to continue their authority even if the principal becomes mentally incapacitated or unable to make decisions independently. It remains in effect until the principal revokes it explicitly or passes away. 4. Financial Power of Attorney: This type of power of attorney primarily deals with financial matters, including managing bank accounts, paying bills, filing taxes, and making investment decisions. It allows the agent to handle financial affairs on behalf of the principal. 5. Medical or Healthcare Power of Attorney: This document empowers the agent to make medical decisions for the principal in situations where the principal is unable to do so. It ensures that the principal's healthcare preferences are honored and medical treatments are administered according to their wishes. 6. Springing Power of Attorney: This type of power of attorney "springs" into effect only when a specific condition or event occurs, which is defined in the document. For instance, the power of attorney may activate only if the principal becomes mentally incapacitated. Power of attorney documents are critical legal tools that provide peace of mind and assurance that one's affairs will be appropriately handled in their absence or incapacity. By understanding the different types of power of attorney documents available, individuals can choose the one most suitable for their specific needs and circumstances.
