A ‘limited power of attorney’ is a formal instrument that a person uses to delegate some other person to act on his behalf on certain issues. It is limited in the sense that it stays in force for a specified duration of time, unlike the general power of attorney that holds on until it is revoked or the principal passes on.
What is a Limited POA Form?
The ‘limited power of attorney form’ is a document that is used to confer this power to an agent officially. Limited POA is generally drafted by a principal or may be downloaded from the relevant state site and then filled out and sent to the various parties concerned.
Types of Limited POA
There are two main kinds of ‘limited power of attorneys.’ These are explained here below:
Durable and Non-durable
The ‘durable limited power of attorney’ is so-called because it stays in force until the death of the principal. It hence gives the agent unlimited leeway to carry out several transactions on behalf of the principal. The non-durable stays in force only as long as the specified durations and timelines have not elapsed.
It is enforceable if and only if certain predefined events arise or happen. Simply put: It cannot be triggered if the principal is still alive, of sound mind, and is largely capable of handling how own issues single-handedly.
Other names of Limited POA
This document goes by many other names. Below are the alternative core names in use:
- A specific power of attorney
- Limited POA
- Special power of attorney
How Limited POA Works?
For a start, the document spells out specific things you want your agent to carry out on your behalf. For it to come to force, you have to assign an agent to carry out the transactions on your behalf. It also provides further details, regulations, and guidelines on how these transactions ought to be carried out.
As stated above, this one differs from the ‘general power of attorney’ in that it runs for a specified duration of time and is limited to specific tasks. Thus, it becomes obsolete after the expiration of the stated terms and durations. The form is triggered by the emergence of the issue that it is crafted to handle.
The document also becomes null and void under some unique circumstances. These include premature death, divorce, separation, mental, and physical incapacitation. Like any other form, it may also be revoked.
How to make a Limited POA?
Step I: Determine the powers
Commence the exercise by determining the powers to grant to a third party. While at it, including the start and the end dates as well as the mandates which the agent is to exercise on your behalf. Be exhaustive to ensure that you leave no room for any ambiguities in the process.
Step II: Choose an agent
Go a step further now to choose an agent to act on your behalf. Remember, this has to be a person who is well known to you and is also trustworthy enough to handle those critical decisions on your behalf. You might want to select someone who stands to inherit your property as he may have the burden of doing a good job.
Step III: Draft the ‘power of attorney.’
Download and fill out the ‘power of attorney form.’ You have the leeway to do so in the Microsoft Word (.docx), Adobe PDF, and Open Document Text (.odt). You should go ahead and fill out two copies, one for each party.
Step IV: Sign the form
To make the form obtain the official character, sign it. The signing has to be done in the presence of a witness, notary public, and with the principal himself. The reason underlying this requirement is the fact that it falls under the ‘financial’ and is governed by the ‘durable laws’ of the state.
Step V: Keep the form
Lastly, you have to save the form for future use and references. You are advised to make copies and use only the photocopy to transact any businesses. That is because the law enforcers will often require an original version when settling disputes.
Limited POA Forms (by State)
Free Power of Attorney Form
Frequently Asked Questions (FAQs)
Does a limited power of attorney need to be notarized?
This requirement varies from state to state. Many states require though that the form be notarized before use. Even if your state does not pose this requirement, you are still highly advised to do so. This is to make it official and instill some confidence in the parties that use it.
What is the difference between ‘general power of attorney’ and ‘limited power of attorney?’
These two documents differ in four main regards, which are outlined and explained below:
The ‘general power of attorney’ gives out a wider set of powers to an agent compared to the ‘limited power of attorney.’ It hence gives the agent a broader leeway and freedom to act. Moreover, it stays in force for a longer duration of time too!
A ‘general power of attorney’ generally spells out the duties to be performed by an agent on behalf of a principal. It leaves out the finer details to the discretion of the agent himself. The ‘limited power of attorney,’ on the other hand goes deeper to stipulate the exact duties and responsibilities as well as how to perform them.
As hinted above, the ‘general power of attorney’ stays in force from the time it is drafted to the time the principal becomes incapacitated, terminally ill, or dead. The ‘limited power of attorney,’ on the other hand has some strict dates within which it may operate or stay in force, after which it expires.
As soon as a ‘general power of attorney’ is drafted, it commences operations and remains in force till it is revoked or the principal passes on. The ‘limited power of attorney,’ on the other hand has to be triggered to operate. Many times, the trigger is the event which it is intended to oversee or the specified timelines.
How to revoke Limited POA?
Step I: Draft your revocation document
Start off by drafting your revocation document. In case you reside in a state in which this document is issued out official, do not hesitate to take advantage of the same. You definitely want yours to be widely accepted and be devoid of any ambiguities, don’t you?
Step II: Fill it out
Move on to fill the document out. While at it, you have to expressly identify yourself and state that you want to revoke an earlier power of attorney you had already granted. Be sure to incorporate the date as well.
Step II: Furnish the form to some witnesses
After completing the form, take the same to some witnesses to vouch for its accuracy. Many states require that you also furnish the photo identification of the witnesses and the accompanying signatures. Finish this step by appending your signatures to the forms.
Step IV: Include the word ‘REVOKED’ in the document
To further make it plain that you wish to revoke your original power attorney, include the word ‘REVOKED’ in letters that are bold, capitalized, and darkened. Attach this to the original copies of the power attorney forms you had drafted earlier.
Step V: Notify each party of your revocation
After being through with the revocation, notify each party of your own intention to revoke an earlier agreement. Simply produce multiple copies of the same and furnish each of your clients or party to the signatory of your intention.