General vs Specific Power of Attorney

In legal authority, the Power of Attorney (POA) stands as a pivotal instrument, granting individuals the ability to make decisions on behalf of others; however, within this framework, two distinct categories emerge: the General Power of Attorney and the Specific Power of Attorney. Each serves a unique purpose, offering varying scopes of authority and responsibilities. At Linley Welwood, we understand the importance of distinguishing between a General Power of Attorney and a Specific Power of Attorney. That is why we have compiled some information to help you understand the differences between General vs Specific Power of Attorney.

Learn about representation agreements vs. power of attorney.

General Power of Attorney

A General Power of Attorney provides the Attorney with broad authority to act on behalf of the Donor in various matters. This can include managing financial and legal affairs, handling real estate transactions, and making decisions about the Donor’s business. Essentially, the Attorney can perform almost any action the Donor could do themselves, except for those acts which the law explicitly requires the Donor to perform personally, such as making a will. The comprehensive nature of a General POA makes it a powerful tool, but it also comes with significant risks. Since the Attorney can make far-reaching decisions, the Donor must trust the Attorney implicitly. Misuse of this power can lead to financial loss or legal complications for the Donor. Therefore, it is typically recommended for use in situations where the Donor is unavailable for an extended period, such as overseas travel, or in cases of declining health where the Donor can no longer manage their affairs.

Specific Power of Attorney

In contrast, a Specific Power of Attorney, also known as a Limited Power of Attorney, grants the Attorney authority to act only in particular situations or for specific tasks. These tasks can range from selling a property, handling a single financial transaction, or performing other specific actions. It is important to note that a Specific Power of Attorney does not cover healthcare decisions. The proper way for healthcare decisions to be delegated is through a Representation Agreement or Advance Directive. Once the specific task is completed, or the time frame expires, the authority granted to the POA ends. The limited scope of a Specific POA reduces the risk of misuse since the Attorney’s powers are clearly defined and restricted to particular actions. This makes it a preferred choice for Donors who need assistance with a particular aspect of their affairs without relinquishing broader control. It is often used in scenarios where the Donor can manage most of their affairs but needs help with a specific matter, such as signing documents for a property sale when they are out of town.

If you have any inquiries about representation agreements, Power of Attorney, or other aspects of wills and estate law, feel free to contact the professionals at Linley Welwood. You can easily reach us by filling out our online contact form. We are here to provide information and address any queries you may have about our services.