Imagine entrusting someone with the keys to your financial, personal, and legal decisions—an entrusted agent empowered by this document. This isn’t a power or authority that you would just hand over to anyone. However, there are certain situations where it becomes necessary. This is when executing a power of attorney becomes useful. Learn about what this legal tool is to determine if it could be a good fit for your situation.
Types of Power of Attorney
With three primary types available, each designates varying levels of oversight and freedom. The general power of attorney grants broad control to the agent across multiple domains, while the limited power of attorney specifies restricted powers within defined parameters. The durable power of attorney perseveres even in the face of the principal’s incapacitation. Choosing the suitable power of attorney hinges on individual needs.
General Power of Attorney
A general power of attorney endows the designated agent with expansive authority. It grants the agent a wide scope of control to act on behalf of the principal. This authority spans various domains, including conducting financial transactions, managing banking affairs, overseeing the buying or selling of real estate, and engaging in interactions with governmental entities.
Limited or Special Power of Attorney
The limited or special power of attorney grants authority to the agent for a specific purpose or within a defined timeframe. This type of power restricts the agent’s authority solely to the designated task or objective outlined in the document. Once this purpose is fulfilled or the specified duration lapses, the authority granted to the agent automatically ceases.
Durable Power of Attorney
The durable power of attorney retains its effectiveness even in the event of the principal’s incapacity. It can be a general or limited power of attorney while also being durable. Crucially, the document must explicitly state its durability, affirming that it remains valid despite the principal’s incapacity, in adherence to Chapter 709, Florida Statutes, ensuring continuous agency even in challenging circumstances.
Execution Requirements
The execution requirements for a Florida power of attorney state that the principal must sign the document in the physical presence of two witnesses, and all parties involved must sign in each other’s presence. Additionally, the Power of Attorney must be acknowledged by a notary.
Capacity to Create
The individual executing the document must possess the mental capacity to comprehend the nature of the document and fully understand its implications. This understanding extends to the powers being delegated to the chosen agent and the potential consequences of granting such authority.
Agent Qualification
Florida law outlines that the agent must be a natural person aged 18 or older, or a financial institution with trust powers and a business presence within the state, authorized to conduct trust business here. However, it’s crucial to designate someone you trust implicitly. Opt for an individual close to you who comprehends your intentions and wishes.
Agent Action Authority
The agent only possesses the authority explicitly provided within the power of attorney document. It’s important to note that the agent does not hold the authority to execute or revoke a will, vote in public elections, perform personal services under contract on your behalf, make certain legal affidavits, or exercise powers as a trustee or court-appointed fiduciary on your behalf.
Specific authorities can be granted to the agent, including but not limited to:
- Creating an inter vivos trust
- Amending or terminating a trust
- Making gifts
- Altering rights of survivorship
- Modifying beneficiary designations
- Waiving the principal’s rights in certain financial arrangements
- Disclaiming property or powers of appointment.
Agent Duties
The relationship between you and your agent within a power of attorney is one of fiduciary responsibility. As a fiduciary, the agent is bound by the duty to act in good faith, prioritizing your well-being and interests above all else. Acting contrary to your best interests would breach this fiduciary duty.
Executing a Power of Attorney
Understanding the types, execution requirements, agent qualifications, and duties within this framework is crucial. A conversation with a knowledgeable lawyer can provide invaluable clarity, ensuring that your Power of Attorney aligns seamlessly with your intentions and safeguards your interests. Their expertise navigates the legal intricacies, offering personalized insights and a sturdy foundation for empowering decisions.
Schedule a consultation and speak with our team or lawyers to discuss your need for executing a power of attorney.
