Situations Where General Power Of Attorney Applies
Of the four different types of power of attorney the general power of attorney gives the agent or attorney in fact the broadest and most far reaching authorities. Before assigning an individual or organization the legal right to handle your financial and legal affairs you may want to consider the situations in which they could act on your behalf.
In the event that you should be unavailable or indisposed your agent will be in charge of handling all your financial affairs on your behalf. An example of some of the things your attorney in fact will do for you (the principle) is access you bank accounts so as to be able to pay your bills and handling other transactions, buy and sell property and other assets and conduct business on your behalf. General power of attorney gives you peace of mind in that should you be physically or mentally unable to carry out your financial obligations every day things like paying your car note, you mortgage and your hospital bills will be handled by the person you choose to appoint.
General power of attorney also gives the agent you appoint the permission to make medical decisions on your behalf should you be unable to do so. Without an agent to make crucial arrangements for you a court of law will decide for you who is fit to carry out your wishes. Designating someone as your agent ensures that the person making decisions should you be unconscious or comatose will be someone you trust to act in your best interests. The decision making powers of the agent should be stated clearly in the general power of attorney contract or it will be considered invalid by a court of law.
The individual or organization you give your general power of attorney to can also file taxes on your behalf. This is applicable whatever the reason for your absence – whether you are traveling out of state, out of the country or are just physically and/or mentally unable to file your taxes. This guarantees that you will not pay any fines or have any of your assets seized for non payment as the agent can file taxes for you and handle any legal matters that may arise later on.
Other situations in which an agent can act on your behalf can be in circumstances where you may need to enter in to a contract of some sort. This is especially helpful if you run as a business as you want things to run smoothly even in your absence. They can settle debts on your behalf, settle claims and enter safety deposit boxes for you. They will be your representative in all matters legal so it is imperative that you choose someone that you trust and who is aware of your preferences and wishes and will carry them out for you when you are unable to.
The above is just a brief overview of instances in which general power of attorney is useful and beneficial to the agent. As always, it is recommended that you consult an attorney so that you may discuss the pros and cons and carefully go over the details of the contract before you choose your agent.