Understanding The Power Of Attorney And Letter Of Authority
There are two important pieces of information that one must understand about the power of attorney documents. One, once a person signs a power of attorney form; it becomes an irrevocable instrument of power. Two, once this is signed, it becomes the responsibility of the individual to give the power of attorney to another person that the agent is practicing law in.
As mentioned above, once this is executed
a person holding the power of attorney no longer needs to take care of it or advise the individual. If there are any instructions or conditions on the instrument, they must remain in the hands of the person giving the power of attorney. This is often referred to as the “power of sale” clause. It is vitally important to understand that once this clause is satisfied, the individual holding the power of attorney no longer has the responsibility or the duty to advise anyone or provide any documents related to what is being represented or may have been represented. In the event the agent begins to represent someone else, they no longer need to provide any services or documentation to that individual. They can now engage in any other activity about that person’s affairs.
It is important to realize
that this document does not become effective unless it is notarized. A notarized signature signifies that the document is legal and binding. Additionally, the individual executing the document must personally sign it. Many other requirements must be met for the powers of attorney and the letter of authorization to be legally binding. These will vary depending on the specific document and its purpose.
When a power of attorney is used
one person can have complete control over the actions of another. This is referred to as “full control.” In this instance, the agent has the authority to make financial decisions, handle personal property, and even hold certain professional licenses. If the full control scenario is desired, the attorney must use specific language to convey this intent to the person who will be delegated authority.
If there is a power of attorney and a letter of authorization
it becomes necessary to get it notarized. There are several reasons why an agent or attorney must get this document notarized. First, it makes it more difficult for one party to challenge the legality of the document. If the document is notarized, it also shows that it was not a mistake or oversight and the power of attorney is no longer in question.
It is common for individuals to share
the responsibility of executing a power of attorney and a letter of authority. This is done when both individuals are involved in signing the document together. However, it should be noted that one person can simply revoke the power of attorney and the document would become null and void. This revocation must happen before the next transfer takes place. When an individual revokes the power of attorney, they can revoke the letter of authorization as well. However, if you have already made use of the document and intend to revoke it, then it may become necessary to obtain a new power of attorney form.