How to Use Power Of Attorney
- 1). Read the power of attorney and determine which type you have. A limited power of attorney grants the ability to perform a specific task with a definite time limit. A durable power of attorney allows an agent to act as a financial manager even if the grantor is incapacitated. A general power of attorney is very broad and allows the agent to manage assets and financial affairs. A springing power of attorney takes effect only when a specific condition or event occurs.
- 2). Use the appropriate type of power of attorney. For example, a limited power of attorney, which only allows the agent to perform a specific task for a limited amount of time, does not allow an agent to make decisions after the grantor is incapacitated.
- 3). Provide the original, signed document when performing the task, such as signing loan documents. The institution will make a copy of the power of attorney for their records. Also, have your photo identification available.
- 4). Ask the bank, lender or other institution if your power of attorney is acceptable. Sometimes institutions, such as mortgage companies, have special power of attorney forms you must complete before acting as an agent.
- 5). Sign documents, such as bank checks, as directed by the institution. Generally, institutions ask that you sign the document with the grantor’s name, along with your signature and the letters “POA” or “attorney-in-fact” written beside it.
- 6). Keep a copy of all documents signed using your power of attorney.
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