The names of the assigning party or the principal, the agent, effective dates, and property covered by the agreement all belong on a power-of-attorney letter, according to the Law Offices of Leonard E. Cox. Laws governing this vary slightly by state, so checking local laws ensures a correct form.Continue Reading
The purpose of a power of attorney is to allow a principal to transfer the power of managing affairs to someone else, or to an organization, when the principal becomes unable. Different types of power-of-attorney letters fulfill different functions, reports Legal Zoom.
A general power-of-attorney letter grants wide powers to the agent, such as purchasing life insurance, handling business and financial transactions, hiring professional help, and resolving claims. Business owners who plan to leave the country for a period of time or individuals who become mentally or physically unable to manage affairs use these, notes Legal Zoom.
Durable power-of-attorney letters are common for people with dementia or another type of injury. This sort of letter specifies that it doesn't become effective without a doctor's certification. Health care power-of-attorney letters deal only with medical decisions, while special power-of-attorney letters deal with more specific situations than general letters, as stated by Legal Zoom.Learn more about Law