Powers of attorney are legal files you can use for any number of functions. Powers of attorney transfer to someone else, called an attorney-in-fact or a representative, your ability to make decisions or participate in agreements. When you select a power of attorney, you give your agent the right to act upon your behalf as a stand-in, and the decisions your representative makes are just as legally binding and enforceable as if you had actually made them yourself.
However, powers of attorney are not simply a blanket declaration or decision making right. The power for your attorney-in-fact to act for you is usually divided into 2 standard categories: restricted and general powers, each of which conveys different rights.
Limited Power of Attorney: As the name implies, limited powers of attorney place particular limitations on the attorney-in-fact. These limits can be whatever the primary desires. A principal can, for example, grant the attorney-in-fact the right to manage her finances while she is on holiday or approve a wider, though still restricted, ability to manage her finances at all times.
General Power of Attorney: A general power of attorney, often referred to as a universal power of attorney, is a broad grant of powers by the principal, permitting the attorney-in-fact to do almost anything the principal can do. General powers of attorney take result immediately, unless otherwise mentioned, and are extremely powerful documents.
Even though a general power of attorney communicates broad authority to your agent, there are still choices or actions the agent is constantly prevented from taking. Your agent, for example, can not develop your last will and testimony or make any changes to the file unless you direct the representative to do so. Likewise, your agent can not vote for you for in an election or perform particular jobs that need legal approval, such as practicing medication for you if you are a physician. State laws on power of attorney are different and particular, so constantly talk to a lawyer before approving power of attorney.