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What is a Power of Attorney?

A Power of Attorney(POA) is a legal document to authorize power by the principal to an agent for performing certain tasks on their behalf.

A Power of Attorney consists of two parties, a principal and an agent. A principal is a person who authorizes certain power to an agent responsible for acting on behalf of principal interest.

A Power of Attorney can be used to make various decisions like financial decisions, healthcare decisions, or sign legal documents, etc.

What are the benefits of having a power of attorney?

A Power of Attorney can be used in different situations to transfer authority. For example, Person A (Principal) wants to buy a real estate property but is not available during the transfer process. In such a situation Person A can authorize Person B (Agent) to sign the documents on his behalf by drafting a power of attorney in Person B’s name.

What are the types of power of attorney?

A POA is categorized into 4 types.

General POA: It is used when a principal wants to authorize maximum power to the agent. In such an instance, an agent can perform various tasks like managing personal finances, buying real estate, and making decisions on behalf of the principal.

Durable POA: In a durable POA, the authorization of power will remain active even after the death or incapacitated situation of the principal. The main purpose of a durable POA is to plan for medical emergencies or situations where a principal is no longer capable of making proper decisions.

Limited POA: A limited POA is used when a principal wants to authorize limited power to an agent on his behalf. For instance: If a principal wants to sell his property, he/she can authorize that power to an agent who will act on their behalf for selling their property.

Durable POA: A springing durable POA is used when a principal wants to authorize power to an agent after he/she became incapacitated. In such POA, the authorization of power will become active once the principal became incapacitated.

What are the limits of a power of attorney?

A person can use a power of attorney to transfer certain rights to the agent however there are some limitations of assigning those rights. If a principal is not in a sound mental state, he/she cannot use a power of attorney to transfer their rights. This will also protect the principal from any possible fraud that may arise because of their mental problems.


A Power of Attorney is a legal document used for giving powers to an agent on the behalf of the principal. The agent uses those powers to act on the behalf of the principal according to their interest. There are different types of POA one can use according to their needs and requirements.

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