Power of Attorney
Power of Attorney (POA): Grants a person the authority to act on another’s behalf; specifically, sign contracts or forms, engage in business transactions, and have access to financial accounts. There are different types of POAs, the most common being the Durable POA which immediately grants authority; meaning incapacity does not have to be established first. Though the Durable POA power is immediate, one can restrict the scope of authority; it does not have to be all power, all at once. All of the POA documents are revocable, thus they can be changed at any time. The POA also ends when the grantor (the person who creates the POA and grants the authority) passes away.
Who are the players?
Principal or Grantor: The person who creates the POA and grants the authority.
Agent: The person who is granted the authority to make financial decisions, sign contracts or forms, and access to financial accounts. This can be any person you trust, over the age of 18.
Common Myth: The agent has unfettered access and can do what they want. This is untrue because the agent’s authority can be restricted. For example: Jerry names Rodney as his POA agent but only gives Rodney the authority to sign business contracts and does not give Rodney the authority to access.
Lillie N. Nkenchor
Lillie N. Nkenchor, Esq., LL.M, President of Lillie N. Nkenchor, PC, educates individuals, families and business owners on estate and business planning concepts. As an attorney and engaging speaker, she helps clients address their vision and devise appropriate, tax-efficient strategies that meet personal and business goals. She is uniquely skilled in removing complexity so her clients can take control of their personal and business objectives.