Power of Attorney – a legal document which gives a person the authority to act as representative with authority to act on another’s behalf. The one giving power of attorney is the principal, while the person acting as representative is called the agent.
Authority and Representation
A power of attorney is used in financial or business dealings where the principal is not present. Either he is away, or he has asked the agent to work on the matter including travel on his behalf. The document is an authorization to be represented in matters of business, or other transactions that deals with finance. The power of attorney serves notice to the counterparts to the transaction that the agent is authorized to act and sign, as if he was the principal..
It is important to note that the agent in most instances may be a close associate, a trusted friend, a lawyer, a relative or someone who the principal trusts. The actions of the agent are limited by the power of attorney. Usually, the power of attorney is only up to a certain financial limit, or up to a certain point in time, or specific only to a transaction. It is also possible that the power of attorney is a one-time only authorization. Be that as it may, the agent still remains as a person of credibility who can be trusted with the transaction.
Role of Lawyers
A lawyer is not needed in creating the power of attorney. For Virginia legal documents for Power of Attorney, there are a lot of samples available from any number of sources, both on the Internet, in libraries and other sources. It is the duty of the principal to outline what needs to be done, and limits of the power of attorney. In most instances, the power of attorney is self-limiting, ensuring that the interests of the principal are not lost due to negligence or collusion.
For Virginia legal documents for Power of Attorney, the use of this instrument is limited to pre-printed forms. Each state has its own ways, procedures, limitations and formats for the power of attorney. Before signing a power of attorney, it is recommended that the proper form be used. Some states do not allow for the use of non-standard forms. Not following the rules would make the document, null and void.
Types of Powers of Attorney
The power of attorney comes in different types: General, Limited, Special, Durable and Medical. The differences between the different types of power of attorney documents are the limitations that are inherent in each, which also limits their possible uses. For all intents and purposes, a pre-printed power of attorney form only needs the names of the principal, and the agent as well as a description of the business at hand.
Durable and General Power of Attorney authorizes the Agent, also called the Attorney. Special and Limited Powers of Attorney apply for specific transactions like the sale of a house. A Medical Power of Attorney authorizes the Agent to act on the behalf of a person who is medically incapable of doing so. Understanding the need would lead to the proper choice of the correct power of attorney.