What is a Power of Attorney, and How Can You Protect Yourself?
What Is a Power of Attorney, Anyway?
A power of attorney is a document that allows a person of your choosing to act on your behalf in areas of your life that you personally designate in writing. A general power of attorney allows your attorney-in-fact to do anything that you can do and act on your behalf in every way possible. This is a dangerous document if the power is given to the wrong person, so don't hand these out lightly. A special power of attorney lets your attorney-in-fact act in very specific circumstances, and limits them to one or a few actions to be taken on your behalf. There is no sure-fire way to ensure your attorney-in-fact is honest, but you can take precautions to protect yourself. Doing so will help protect your reputation and your finances.
Trusted Individual
Choose a trustworthy person close to you to serve as your attorney-in-fact. A parent, sibling or spouse can often be a good choice. A close, trusted, long-time friend is also a good choice. Don't designate a stranger or acquaintance as your attorney-in-fact, as this can be a disaster waiting to happen.
Limited Power
Limit your attorney-in-fact's power. Give your attorney-in-fact only as much control over your personal affairs as necessary; only over the areas that you will be unable to handle yourself, and only for the duration of time that is absolutely necessary. A general power of attorney is a dangerous document if used incorrectly or by a person with less-than-honest intentions. A special power of attorney limits your attorney-in-fact to only one or a few actions on your behalf and is a much better choice.
More Than One Attorney-in-Fact?
Appoint two or more attorneys-in-fact to serve together. Specify in your Power of Attorney document that two or more signatures are required for actions on your behalf. This lessens the risk of fraudulent or unscrupulous actions.
Keep Tabs
Check in with your attorney-in-fact often. Keep a handle on your affairs as best you can. Check your credit report and bank accounts on a regular basis to catch any fraud that might occur. Doing these things can help you avoid a disaster.
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Published by Maggie OLeary - Featured Contributor in Lifestyle
Maggie O Leary served on active-duty in the United States Military from 1997 to 2010, before joining the Reserves. She is currently attending college full-time, pursuing a Bachelor s Degree in History. In ad... View profile
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