Many people assume a Power of Attorney is a permanent transfer of decision making authority to another person. In fact, while many POAs are permanent, a Limited Power of Attorney is designed to be temporary or for very specific situations. Typically a Limited POA is for a specific act or particular purpose, and for a short timeframe.
A Limited Power of Attorney (also called a Specific or Special Power of Attorney) allows the person who has the POA, the holder, to legally act on behalf of someone else, the principal, for a specific timeframe, scope or document.
There are many circumstances when a Limited Power of Attorney is a good option:
• If you are going to be out of town traveling or living for an extended period of time
• If you need to sell or buy property in another state or country and can’t go there yourself
• If you become ill and need someone to conduct a business transaction on your behalf
When the situation or purpose has passed, the principal can revoke the Limited POA and their agent is no longer legally authorized to act on their behalf. A Limited Power of Attorney is automatically be revoked upon the death of the principal.
A Limited Power of Attorney gives someone temporary authority to take make defined legal actions for a specific period of time. For example, parents could be out of the country for an extended period of time and authorize someone to make medical and care decisions on behalf of their young children while they are away. Once the authorization date of the POA has passed, the Limited Power of Attorney is no longer valid.
A Limited POA can legally authorize someone to act on another person’s behalf in a specific scope or for a specific situation. For example, an investment advisor could be given power of attorney to handle investment transactions. The POA does not authorize the agent to act on the principal’s behalf for any other transactions.
A Limited Power of Attorney can give someone the authority to sign a legal document for a specific transaction. For instance, a limited power of attorney may be used to enable a real estate agent to handle a closing on behalf of a buyer or seller who is far away. The agent is not authorized to sign any other documents not listed in the POA.
A limited power of attorney is a legally binding document that authorizes decision making power to another person. While there are online POA forms available, you should consult an experienced Power of Attorney lawyer in your state to make sure you are fully protected if you grant someone the ability to make legally binding decisions on your behalf.
When you work with an attorney to execute a Limited Power of Attorney, they can explain the ramifications and advise you of the best type POA to fit your needs. To talk to an Illinois POA attorney contact Mario Godoy at the Estate & Probate Legal Group in Lombard Illinois at 630-687-9100. We serve Cook, Dupage, Kane, Lake, and Will counties.