Many think a Power of Attorney means giving someone control forever, but that’s not always true.
So what is a limited power of attorney? A limited POA is usually given for a short time or in specific situations, like giving someone power for a little while.
This article will talk about a Limited Power of Attorney, explaining what it is and why it can be useful.
What is a Limited Power of Attorney?
A Limited Power of Attorney, also known as a Specific or Special Power of Attorney, lets the person holding it act on behalf of someone else for a specific time, purpose, or document.
This type of Power of Attorney is useful in various situations:
- If you’re away for a long time, traveling, or living somewhere else.
- If you need to buy or sell property in another state or country but can’t be there yourself.
- If you get sick and need someone to handle a business transaction for you.
Once the situation or purpose is done, the person who gave the Power of Attorney (the principal) can cancel it, and the agent is no longer allowed to act for them.
The Limited Power of Attorney is also automatically canceled when the principal passes away.