When deciding to use a power of attorney, there are several types to choose from. Two of the types of proxy forms available are general and limited. Although both types attach an agent or proxy and authorize the agent or proxy to perform an act or acts on behalf of the principal and act on behalf of the principal, they are also very different. These are the two most common types that people choose, because one covers many areas of a person’s life, while the other is very specific and is limited to only certain dispositions and parts of a person’s life.
A general power of attorney gives a person or organization the authority to do almost anything that a person can do for themselves. A general attorney is often used to give a relative or close friend the authority to handle multiple areas of a person’s life. This type of power is generally used to manage all areas of a person’s life when they are unable to do so, whether due to health conditions, being out of the country, other commitments, or any other reason.
A limited power of attorney specifies a specific transaction or deal rather than handling many aspects of a person’s life. The authority granted is usually very limited and is clearly defined in the power of attorney form. With both a general attorney and a limited attorney, they can include the following aspects of a person’s life. The difference is that the General will take care of all these areas, while the Limited will take care of a specific detail or function. These are some of the most common situations in which these forms of power will be used, however, they may not be the only reason, any legal transaction can be handled by an agent or attorney in fact.
- All kinds of banking transactions.
- Entry into safe deposit boxes.
- Transactions involving US securities.
- Purchase of property.
- Property sale.
- The purchase of life insurance policies.
- Debt payment.
- Debt collection.
- The settlement of claims.
- Contractual agreements.
- Stock purchase and sale transactions.
- Purchase of real estate.
- Sale of real estate.
- Enter into mortgage contracts.
- Real estate management.
- Establish loans and borrow money.
- Filing of tax returns.
- Transactions and dealings for the benefit of the government.
- Manage business affairs.
- Make other financial decisions.
- Handle estate planning decisions, including gifts.
With both types of power of attorney forms, a person can revoke the appointment at any time. It is not permanent and in both cases the agent or proxy only has control of the specified areas.
