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Power of Attorney Explained
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Incapacity
A state in which the principal is legally unable to make decisions for themselves due to a mental or physical condition.
Co-Agents
Multiple agents appointed by the principal in the Power of Attorney to work together to make decisions.
Competency
The mental ability of the principal to understand the nature and implications of the Power of Attorney and to make their own decisions.
Governing Law
The state laws that determine the validity and interpretation of the Power of Attorney document.
Principal
The person who grants the authority to another person to make decisions on their behalf under a Power of Attorney agreement.
Joint Agents
Two or more agents who are appointed to act together with equal authority in a Power of Attorney.
Springing Power of Attorney
A Power of Attorney that comes into effect upon the occurrence of a specific event, usually the incapacitation of the principal.
Non-Durable Power of Attorney
A Power of Attorney that is no longer valid once the principal becomes mentally incapacitated or unable to make decisions.
Successor Agent
An individual who is named in the Power of Attorney to take over as the agent if the original agent is unable or unwilling to serve.
Durable Clause
The section of a Power of Attorney that specifies that the agent's authority continues despite the principal's incapacity.
Health Care Power of Attorney
A specific type of Power of Attorney that allows the agent to make medical decisions on behalf of the principal.
Notarization
The act of officially certifying a Power of Attorney document by a notary public to make it legally valid.
Granting Clause
The portion of the Power of Attorney document that specifies the powers granted to the agent.
Agent or Attorney-in-Fact
The individual who is granted the power to act on the behalf of the principal through a Power of Attorney.
Power of Attorney (POA)
A legal document that gives one person the authority to act on behalf of another person in legal or financial matters.
Durable Power of Attorney
A Power of Attorney that remains in effect even if the principal becomes mentally incapacitated.
Acknowledgment
A formal declaration made before a notary public by the principal, affirming their understanding and voluntariness in granting the Power of Attorney.
General Power of Attorney
A Power of Attorney that grants broad powers to the agent to conduct many types of transactions on behalf of the principal.
Revocation
The act of withdrawing the power granted under a Power of Attorney, which must be done while the principal is competent.
Special or Limited Power of Attorney
A Power of Attorney that grants the agent authority to perform specific acts or transactions for the principal.
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