General Power of Attorney

What is a General Power of Attorney?

A General Power of Attorney is a legal document that grants another person, known as the “attorney,” the authority to act on your behalf in a wide range of matters. It is commonly used to allow someone to make decisions and manage your financial, legal, or personal affairs if you are unavailable or unable to do so yourself.

How Does a General Power of Attorney Work?

A General Power of Attorney gives the appointed individual (the attorney) broad powers to perform any legal action that you, the principal, could perform. This includes handling financial transactions, managing investments, signing contracts, or making decisions regarding your property and assets. The attorney’s authority is typically effective immediately upon signing, and it remains in effect until you revoke it, the purpose of the power is completed, or the principal becomes mentally incapacitated.

Common Uses of a General Power of Attorney

A General Power of Attorney can be useful in many situations. Some common scenarios include:

Managing Financial Affairs: If you are going abroad or unable to manage your finances, you can grant someone the power to handle bank accounts, pay bills, and manage investments.
Real Estate Transactions: Your attorney can sign property documents on your behalf, such as selling or leasing a property.
Tax and Government Affairs: An attorney can handle tax filings, communicate with government agencies, and manage other official matters on your behalf.

Key Features of a General Power of Attorney

Broad Authority: Unlike other forms of power of attorney, a general power gives your attorney significant discretion over your affairs.
Revocable: You can revoke or change the power of attorney at any time while you are mentally capable.
Temporary or Permanent: A general power of attorney can be used temporarily (e.g., during travel) or for an extended period, depending on your needs.
No Health Care Decisions: A general power of attorney does not grant authority to make decisions about medical care or treatment. A separate document, like a health care or medical power of attorney, is required for that.

How to Create a General Power of Attorney

Creating a General Power of Attorney is a straightforward process, but it’s important to ensure the document is drafted according to the laws in your jurisdiction. Here’s a basic outline of how it works:

Choose Your Attorney: Select someone you trust to manage your affairs. This person can be a family member, friend, or professional.
Draft the Document: You will need to create the General Power of Attorney document, specifying the powers granted to your attorney and when they will begin to apply.
Sign and Witness the Document: The document must be signed by you, the principal, and witnessed by an authorized individual. Some jurisdictions may require notarization.
Provide Copies: After signing, provide copies of the document to your attorney and any other relevant parties, such as financial institutions or real estate agents.

When Does a General Power of Attorney End?

A General Power of Attorney will remain in effect until one of the following events occurs:

Revocation by You: You may revoke the document at any time as long as you are mentally competent.
Death: If you pass away, the power of attorney is automatically revoked.
Incapacity: In some cases, if the principal becomes mentally incapacitated, the power may end unless it is specified as a “durable” power of attorney, which continues even in the event of incapacity.

Risks to Consider

While a General Power of Attorney can be very useful, it also comes with risks:

Abuse of Power: The person you appoint as your attorney will have significant control over your assets and affairs, so it’s important to choose someone trustworthy.
Overuse: Your attorney may act outside the scope of your wishes or misuse the authority given.
Lack of Checks: Since a general power is broad, there are fewer checks on your attorney’s actions compared to a more limited power of attorney.

Legal Assistance and Support

Navigating a General Power of Attorney can be complex, especially if you are unsure about the scope of powers to grant or how to protect yourself. Consulting with a legal professional can help ensure that your document is correctly drafted and reflects your intentions.

Need Help with a General Power of Attorney?

If you are considering creating a General Power of Attorney, or if you need assistance in making sure it meets your needs, we can help. Contact us today to discuss your situation and get started with the proper legal documentation.