Legal Matters - Power Of Attorney

A person can issue a letter to another person authorized to act in business or legal matters on his behalf and this is called a letter of attorney or power of attorney in common law. The person who has granted power of attorney is known as principal and the person acting on behalf of the principal is known as attorneys-in-fact or agent. The lawyer-in-fact is empowered to sign documents on behalf of the principal.

When a person is incapacitated because of some suffering and could not sign a check, that person can ask another person to do it through verbal instructions. Institutions such as banks, hospitals, the IRS in the United States insists on a proxy in writing to honor the instructions and they usually take up the original letter with them for their records.

The signature of the principal in a notarized power of attorney must get a legal status similar to the case of signatures in any deed, under normal circumstances, which are notarized. This process is known as "dignity rule".

The scope of power of attorney can be defined in the message itself. It may be a limited power of attorney to perform specific acts or it may be a broad or general power of attorney to make any and all acts on behalf of the principal. A court will interpret the scope of power of attorney, exactly as described in the letter. A deadline can be set to a proxy.

After the death of the key becomes invalid proxy. It will also be invalid when the principal becomes incapacitated due to mental illness or physical injury if a clause in the original proxy specifically exempting such provisions.

This type of "durable power of attorney" or "live" will enable the agent to make healthcare decisions of the principal, if needed.

In a "springing power of attorney" gave the power becomes valid only when the specific acts described in the letter takes place - such as illness, which incapacitate the most important - in the future. Because of privacy legislation in the U.S., doctors will not give medical history or related information on the capacity of the principal, unless special permission is given in the proxy.

The principal of a proxy may revoke the powers, by informing the lawyer-in-fact that it is revoked.

A template for different types of proxy with standardized forms are available to use and various organizations also provide the same for their customers, to patients, clients, members or employees.