A power of attorney is an authorization granted before a notary or legal professional in favor of a third party so that a specific procedure can be carried out. This power of attorney contains the powers that the attorney-in-fact is authorized to exercise. The power of attorney is binding. The power of attorney to a third party will bind whoever granted it.
Types of power of attorney
When looking at the types of power of attorney, the first power of attorney is the “General” POA (power of attorney). A General POA grants the power of attorney to authorize another person, commonly called the attorney-in-fact, to act on his behalf in all kinds of acts such as:
Manage bank accounts.
Sell or buy properties.
Conduct banking transactions
NOTE: the one who grants the power only grants the attorney-in-fact specific powers.
General power of attorney: the holder or principal assigns his powers for a legal representative to act on his behalf in different legal or material acts. General power of attorney grants very broad powers to the point that the attorney-in-fact is allowed to buy and sell real estate.
Processing of a procedure: in this case, the so-called power of attorney for lawsuits is used, which is nothing other than the procedure in which the client empowers his attorney to carry out on his behalf all those acts related to the processing of a legal procedure.
Regarding its duration, they can be divided into:
Permanent: it will remain effective even after the grantor (principal) suffers a disability.
Limited: it will expire at the time when the person who granted the power of attorney is disabled.
This measure is very useful for different situations in life and more specifically to solve some bureaucratic procedures in the business world.
With these documents, the lawyer or notary will ensure that the identity of the person who grants it, called the principal, as well as their wishes, is in accordance with the law. For its part, the person designated as a legal representative or attorney-in-fact must prove this condition by providing a copy of the authorization granted.
Who can grant a power of attorney?
Any person of legal age and who has all their mental faculties can benefit from this power of attorney. What should you do? Simply go to a notary, present your ID and pay the cost for a power of attorney or a general power of attorney. The cost varies depending on the state.
In the case of wanting to annul or revoke the validity of the power of attorney document, this can be done at any time before any lawyer or notary. However, there is some situation where transferring legal representation is not possible, which may happen when making a will (except in exceptional situations allowed by local legislation).
Before making a decision, it is convenient to explain to the notary or lawyer the purpose of the power of attorney to be signed. The notary will be able to advise you correctly as to which power of attorney is the one that best suits the characteristics and context of your case. Therefore, it is important to consult with a lawyer.
Most Commonly Used
The most common types of power of attorney are:
Power of attorney for lawsuit, which is granted so that another person can be involved in a lawsuit on behalf of the affected party.
Power to administer assets, which is the attorney-in-fact responsible for managing or dispose of the principal’s assets.
Special powers can be explained as when the attorney-in-fact obtains powers for a specific legal action related to a more specific action. For example: getting married, buying or selling an asset, making a transfer, or accepting an inheritance.