What is the Difference Between Special Power of Attorney and General Power of Attorney?

Question from ABHIMANYU PANDEY, What is the Difference Between Special Power of Attorney and General Power of Attorney?

Answer from AI:

A Power of Attorney (POA) is a legal document that allows an individual (the principal) to appoint another person (the agent or attorney-in-fact) to manage their affairs if they are unable to do so themselves. There are two main types of POA: Special Power of Attorney and General Power of Attorney.

Special Power of Attorney

A Special Power of Attorney, also known as a Limited Power of Attorney, grants the agent specific powers to act on the principal’s behalf. These powers are limited to the ones explicitly stated in the document. For example, the agent may be authorized to sell a specific property, manage certain financial transactions, or make healthcare decisions.

General Power of Attorney

A General Power of Attorney, on the other hand, gives the agent broad powers to act on behalf of the principal. This can include managing financial and business transactions, buying life insurance, settling claims, operating business interests, making gifts, and employing professional help.

It’s important to note that the powers granted under a General Power of Attorney are broad and sweeping, so it’s crucial to trust the appointed agent.

Key Differences

The main differences between a Special and General Power of Attorney are:

• Scope of Authority: A Special Power of Attorney grants limited powers, while a General Power of Attorney grants broad powers.
• Duration: A Special Power of Attorney often ends when the specific task is completed, while a General Power of Attorney usually remains in effect until the principal becomes incapacitated, revokes the POA, or passes away.

Legal Advice and Consultation

Given the significant implications of granting a Power of Attorney, it’s recommended to consult with a legal professional before doing so. They can provide personalized advice based on your specific circumstances and ensure that your interests are adequately protected.

For more information on Powers of Attorney, you can refer to the Legal Information Institute’s resource on Power of Attorney.

Remember, this information is a general guide and not a substitute for legal advice. Always consult with a legal professional for advice tailored to your situation.