The Difference Between A Limited Power Of Attorney and a General Power Of Attorney
When determining to use a power of attorney, there are multiple types to choose from. Two of the types of available power of attorney forms are General and a Limited. Though both types appoint an agent or attorney-in-fact and authorize the agent or attorney-in-fact to perform an act or acts for the principal and to act in 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 provisions and parts of a person’s life.
A General power of attorney grants a person or organization the authority to do most anything a person could do them self. 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 of attorney is usually used to handle all areas of a person’s life when they are not able to, whether the reason be for health conditions, out of the country, other commitments or any other reason.
A Limited power of attorney specifies a specific transaction or dealing instead of handling many aspects of a person’s life. The authority granted is usually very limited and clearly defined in the power of attorney form. With both a General and Limited attorney, they can include the following aspects of a person’s life. The difference being is that the General will handle all of these areas, while a Limited will handle one specific detail or function. These are some of the most common situations that these power of attorney forms 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 types of banking transactions.
Entry into safety deposit boxes.
Transactions that involve US securities.
The purchase of life insurance policies.
The settlement of claims.
Buying and selling of stock transactions.
Buying real estate.
Selling real estate.
Entering into mortgage contracts.
Managing real estate.
Setting up loans and borrowing money.
Tax return filings.
Government benefit transactions and dealings.
Manage business matters.
Make other financial decisions.
Handle estate planning decisions, including gifting.
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 attorney-in-fact only has control of the areas specified.