Similarities And Difference Between General And Limited Power Of Attorney
Power of attorney can be of many different types, general and limited being the two of the most common among them. Both of these POAs have a number of similarities and differences that make them relevant to principals in tune with their specific requirements. Here is a small overview of similarities and differences of general and limited power of attorney that can help you decide upon the option that is best for your interests…
General and Limited POA – Differences
General power of attorney basically allows the agents to address all basic responsibilities like taking financial decisions, managing properties, buying and selling assets, operating / managing business etc on occasions when the principal is out of town / nation or is not in the right frame of mind to handle these core matters on his / her own.
On the other hand, limited POA allows the agent to conduct a very specific act under very specific situation as comprehensively specified by the principal and ceases immediately thereafter. Limited POA can include one; few or all responsibilities listed under General POA but under more controlled conditions.
General and Limited POA – Similarities
The first and the most important similarity between general and limited power of attorney is that they can include similar scope of responsibilities. They can also include (non durable) health care clauses as well.
Secondly, both limited and general POA need to be created in proper legal forms with proper appointment of agents and signature of witnesses without which the POA can be rendered invalid.
Thirdly, nature, scope and application of limited and general power of attorney is guided by state specific laws and cannot be created with clauses that do not fit the stipulated regulations. In cases when POA does not comply with state laws, it cannot be legally enforced.
To conclude, there is a very thin line that differentiates these two forms of POA. This makes it very necessary for principals to understand the same clearly before making their choice. You may download any kind of legal forms here.