General Power of Attorney

What is a power of attorney?

A power of attorney is a legal document that allows one person to grant another person the authority to act on their behalf. This is an important legal document that allows the delegation of authorities related to finance management, real estate matters, execution of contracts, and many more.

General Information

A power of attorney template is a popular legal tool amongst individuals and business owners who wish to secure their future by ensuring predictability in managing their own affairs.

This document could be of different types. Depending on the document’s subject: property, business, estate, or financial power of attorney template. However, the two most important types are the following:

• general power of attorney sample; and
• durable power of attorney.

What is the difference between durable vs. general power of attorney?

A durable power of attorney is a type of POA that remains valid even if the principal becomes mentally or physically incapacitated. This is a key difference from a standard general power of attorney, which ends upon incapacity.

It is common to issue a durable financial power of attorney when you want to make sure that all your monies, bank accounts, and securities are in good hands once you are physically incapacitated to manage them. On the other hand, a general power of attorney is more used in case of estate and asset management.

Choosing the right type of POA depends on your specific needs, the level of trust in your agent, and whether you want the authority to continue in the event of incapacity.

When do you need a general power of attorney?

Drafting a general power of attorney could be a wise life decision for a number of reasons, for instance:

• Temporary absence. Even when you need to travel for a prolonged period of time, certain things cannot let you go. Someone has to pay bills, manage business, and do other daily routines. This is when having a solid, durable power of attorney form could get you covered.
• Business delegation. Sometimes you need to take a short break from business. But you cannot do so as your involvement is needed during meetings, contract execution, etc. Creating a general power of attorney form helps you temporarily delegate your business tasks to an authorized legal representative without hassle.
• Physical Incapacity. Life is unpredictable, so it is better to plan in advance the management of your financial and personal affairs once you are physically unable to do so. Having a well-drafted general durable power of attorney ensures the smooth running of your business and family life despite the health conditions. In case of a mental incapacity, another type of a power of attorney should be used instead.
• Elderly Individuals. It is vital to find a trusted agent who can deal with your financial and estate affairs when you are in the hospital or simply feeling unwell. A sample of general power of attorney allows you to appoint a trusted person well in advance.

What powers can the agent receive under general power of attorney?

While there is no specific difference between powers granted under general power of attorney vs durable, we will list them all below:

• Managing Bank Accounts. For a durable financial power of attorney, you can authorize a representative to deal with all financial or banking institutions where you have a deposit or account opened. Those powers normally include drawing funds from the accounts, writing checks, transferring monies from one account to another, closing a bank account, etc.
• Paying bills. You can issue a durable financial power of attorney to grant a principal authority to pay bills on your behalf, including electricity, water, Internet, and other bills.
• Proceedings and Litigations. You can use this document to hire a representative to litigate, sue, and participate in court hearings on your behalf.
• Securities and Stocks. This general durable power of attorney form could be used to sell, transfer, redeem, gift, or otherwise dispose of your securities or stocks. Apart from that, you can even authorize your representative to participate in board of directors or shareholders meetings on your behalf.
• Managing Estate. This durable power of attorney form could also be used to authorize a representative to sell, purchase, lease, invest, or dispose of real estate, tangible property, or other personal property on your behalf.
• Executing Contracts. A power of attorney is a legal tool that allows you to delegate the right to sign, execute, deliver, or acknowledge various personal or commercial contracts to a third party.

What to include in the general durable power of attorney form?

There are a number of specific components every general durable power of attorney must have.

Principal Details

A principal is a person who wants to authorize another person to perform certain actions on their behalf. Anyone who is at least 18 years of age and of sound mind has a right to sign a power of attorney. A person who is mentally incapacitated cannot issue this document.

The text of a durable power of attorney form must reflect a principal’s full name, address, date of birth, and signature. A principal can insert their digital signature using online tools or print the document and sign it in person. Both methods are acceptable.

Agent Details

An agent is an individual who is being appointed under durable or general power of attorney. Usually, an agent is being referred to as a proxy or a legal representative. In most of the cases the principal appoints as an agent a person whom they could trust. The state laws allow you to appoint your spouse or family members as a representative.

It is worth considering the appointment of an alternative agent, especially when drafting a durable power of attorney form. An alternative agent is an additional proxy who replaces the main agent once he or she is dead, incapacitated, or unwilling to perform their duties.

Apart from that, an agent could also receive monetary compensation for performing duties under the power of attorney. Neither federal nor state laws define the amount and frequency of such compensation.

Grant of Powers

The most important part of every general power of attorney template is the scope of authorities an agent receives under the power of attorney. A principal should give careful thought when defining a scope of granted powers, especially when it comes to financial or estate matters.

Some states, for instance, limit a principal’s right to delegate certain authorities to a proxy. In a general power of attorney template California a principal cannot authorize their proxy to change voting information about the principal in national registrars.

Termination of powers is another important consideration. In general, the authorities under the document shall automatically expire once:

• The principal dies;
• The purpose of the power of attorney is fully accomplished;
• A principal revokes this power of attorney in writing.

How to customize a general power of attorney at FasterDraft?

To get a fully customized legal document template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format—general power of attorney form PDF or Word.
4. Make a payment.
5. E-sign, download, print it out, and notarize the document.