A Special or Limited POA gives an Agent the power to act on your behalf, but only specific powers. You can create several Special POAs, with different agents granted different powers. Here is a list of some of the specific powers you can grant to your Agent:.
- Sign checks.
- Withdraw money.
- Make a gift.
- Create, amend, revoke, or terminate an inter vivos trust.
- Create or change rights of survivorship.
- Create or change a beneficiary designation.
- Authorize another person to exercise authority granted by the power of attorney.
- Waive the principal’s right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan.
- Exercise fiduciary powers that the principal has authority to delegate.
A Durable Power of Attorney also becomes effective immediately upon signing, however it allows the Agent to continue acting on behalf of the Principal even when he or she becomes incapacitated. This type ends automatically when you die, but you can also rescind it, as long you are not incapacitated.
A Power of Attorney is different than an Advance Healthcare Directive because an Advance Healthcare Directive only allows another individual to make healthcare decisions on a principal s behalf. It talks about specific circumstances under which a principal would like someone else to be their agent for health and allows a principal to define the types of authority they would like the agent to have. A Power of Attorney is similar, but is used only for financial decisions.
After inputting the required information, the Power of Attorney should be printed out and signed by the principal, as well as notarized.