A limited power of attorney is usually established to achieve a specific financial or legal goal. (For example: You might want one if your signature is needed on a financial or legal document, but you cannot be present to physically sign the document.)
Reasons for establishing one
You might consider establishing a limited power of attorney if you cannot be present to sign or execute certain documents or dealings, and need a person with legal authority to act on your behalf.
Reasons to establish a durable power of attorney rather than a non-durable power of attorney
If you should become incapacitated or incompetent before the specific transaction is to occur, a limited power of attorney can expire, and the agent would not be able to act on your behalf. The powers generally conveyed in a durable power of attorney are much broader than a limited power of attorney, which is why many legal professionals encourage naming a durable power of attorney instead.
When a limited power of attorney goes into effect
This goes into effect as soon as the document is signed and expires if the limited purpose of the power has been completed, when you die, or potentially when you become incapacitated. You may revoke a limited power of attorney at any time.
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Neither Transamerica nor its agents or representatives may provide tax, investment, or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.
Things to Consider:
- It’s important to pick someone you trust without question to hold limited power of attorney.
- While limited power of attorney will cover a specific or legal goal, it expires if you die or if you become unable to make decisions on your own behalf.
- If you’re worried this won’t provide the financial or legal protection you require, you should look into creating a durable power of attorney instead.