Minneapolis Attorney

Power of Attorney

A Power of Attorney is a legal tool used to delegate authority to another person to handle affairs when you are unavailable or unable to do so. The person who signs a Power of Attorney is called the Principal, while the person who receives the legal authority to act is called an Agent or an Attorney-in-Fact. Several different types of Power of Attorneys exist, allowing the legal authority granted to be very broad or only applicable in specific situations. The general powers granted include banking transactions, buying and selling properties, purchasing life insurance, filing tax returns, and exercising stock rights. Optional rights that can be granted are operating business interests, making gifts, making transfers to trusts, and disclaiming interests.

In addition to various powers granted within the legal document, various types of Power of Attorneys exist. ‘Nondurable,’ ‘Durable,’ and ‘Springing’ Power of Attorneys are all options. A nondurable Power of Attorney becomes effective immediately and is often used for a specific transaction, like handling the principal’s affairs while the principal is out of the country. A durable Power of Attorney enables the agent to take control when the principal becomes mentally or physically incompetent. It is generally effective until the death of the principal. A springing Power of Attorney becomes active at a later time when a specific event occurs, usually the illness or death of the principal.

If you have any questions about setting up a Power of Attorney, please contact the experienced Minneapolis lawyers at Skjold Barthel today.