Limiting The Power of Attorney

The appointment of a legal representative to act on the behalf of another person is a very common practice, particularly for those suffering from a long-term illness.

For those considering giving legal power of attorney to another person to take charge of their affairs, it is important though to know the limitations of that power. The keyword is limited or specific. Both parties need to know what is being authorized so that a person’s wishes can be carried out faithfully and effectively.

Authorizing Power of Attorney

By affording power of attorney, one person is allowing another to act on his or her behalf. This includes making decisions, signing documentation, or simply giving instructions. Usually, this power is awarded for a specific purpose, such as the inability to give informed consent, therefore it is up to the person giving the authorization to specify the reasons behind their decision. It is always best to seek legal counsel before signing any documentation or contract and to review how much say they want someone to have over their affairs.

Limiting the Use of Power

Oftentimes, power of attorney is issued in situations where a person will be absent or unable to give their consent personally. This can be as a result of the inability to be in a certain location at a certain time or illness. For this reason, it is possible limit the authority to a single area of activity, such as the handling of a sale, investment, or will. It pays to know that the person representing the first party is familiar with the task at hand, therefore if the matter is financial, that person may want an investment adviser to represent them.

Power of attorney does not grant a person the freedom to represent the interest of another at will but rather it means that they are obligated to carry out that person’s wishes as requested or to the best fo their knowledge. It is worth ensuring that any authority afforded is specific to a particular task and has a timeframe so that the best possible advocate is appointed and that they have the most up-to-date information possible. Revocation clauses allow the person granting authorization to void any mishandling of their interests or to simply revoke the authorization if it is no longer needed. This should guard that person’s rights and wishes, should the need arise.