What Is a Limited Power of Attorney?
The limited power of attorney definition is the same across the US. A limited power of attorney is a legal document that records the specific roles and responsibilities of someone that you appoint to act as your agent. The limited power of attorney (LPOA) remains valid so long as you didn't state the timeline on the form or your agent has not completed the responsibilities you assigned to him/her.
Once appointed, your agent can make decisions on your behalf relating to your bank accounts, safety deposit boxes, tax filing, and retirement benefits. For a limited power of attorney to be valid, it must be signed by the principal in front of at least two witnesses or a notary.
How to Make a Limited Power of Attorney?
The process of making a limited power of attorney is the same across the US. Here is how to go about it:
Step 1 – Decide the Powers
The first step to making a limited power of attorney is to decide the powers that you will grant your agent. Ensure you take time to assign responsibilities to your agent and include a timeline.
Step 2 – Appoint the Agent
The next step is to appoint an agent. Make sure you choose someone you trust. Whether the person is your family member or not, it doesn't matter. What matters is that you should trust the person.
Step 3 – Write the POA
Writing the limited POA is not as difficult as most people think. It is a straightforward process. Here at this page, we can help you get around this. We have in-house specialists that will help you craft a nice limited power of attorney.
Step 4 – Signing
Once you are done writing the POA, the next step is to append your signature to make it valid. When signing the form, you must be in front of a notary public or witnesses or both. Upon signing the form, the limited POA becomes valid.
How to Revoke a Limited Power of Attorney?
Revoking or canceling a limited power of attorney is simple and straightforward. The moment you become incapacitated or die, your limited POA will revoke automatically. But if you want to revoke it without you being incapacitated, there are three ways you can do it.
The first is to enter a revocation date into the limited power of attorney form. Once that date reaches, the limited power of attorney becomes invalid and your agent would no longer continue to make decisions on your behalf.
The second is when your appointed agent has completed his/her responsibility. Once your agent completes his/her responsibilities, the limited power of attorney will become invalid. Lastly, you can fill the revocation of the power of attorney form to render the powers giving to your agent invalid.
How Long Does a Limited Power of Attorney Last?
The best answer to this question is that it doesn't have a timeline. It depends on how long the principal wants it to last. If you set a timeline for your limited power of attorney, it will elapse on that day. If you make the power of attorney indefinite, it will be valid even after your death.
And The major difference between a general power of attorney and limited power of attorney is that the latter grants limited power to your agent, whereas under the general POA, your agent can make any decision on your behalf.
Okay, that's it. You can see that drafting a limited power of attorney is simple and straightforward. If you feel overwhelmed drafting one, you can find limited powers of attorney samples on this page.
Limited Power of Attorney FAQs
How do I set up a limited power of attorney?
Creating a limited power of attorney is not a difficult process. Here is how to go about it. Download the limited POA form from a reputable source like CocoDoc. Next is to appoint an agent. Remember, your agent is someone that will act or take serious decisions on your behalf. Then, draft a statement of authority and set time limits that you want the POA to be valid. Sign the form and append your signature.
What are the limits of power of attorney?
The moment you appoint an agent to make important decisions on your behalf, there are certain limitations that the agent has. The first limitation is the agent cannot unilaterally make decisions that will contravene the terms of the power of attorney. The second limitation is that he/she will be held liable in the event of negligence or fraud.
Is a power of attorney valid if not notarized?
So many states in the US require that a principal notarize his/her limited power of attorney for it to be valid. However, regardless of the point of view of the law, it is important to notarize your limited durable power of attorney. For instance, if you set up a durable POA and you don't notarize it, the people you are dealing with may not accept it.