A Power of Attorney allows you to select an agent to act on your behalf. Usually Powers of Attorney are create for financial reasons.
Examples of uses of the Power of Attorney involves giving someone the power to go to your financial institutions on your behalf, sell real estate, prepare your taxes, and apply for governmental benefits.
The Power of Attorney can be drafted generally or specific to limit the powers of your agent.
In Florida, the Power of Attorney is effective immediately. Florida got rid of the “springing powers of attorney. A springing power of attorney was a power that only became effective upon your incapacity.
A Power of Attorney terminates upon your revocation, death or incapacity unless you make the power “durable.”
By making the Power of Attorney durable, what you effectively done is to give your agent the power to make decisions on your behalf even in the event of your incapacity.
The Durable Power of Attorney is used for incapacity planning. With a general power, it allows your agent to make a lot of the day to day transactions that you would otherwise have done. Beware that when creating a Power of Attorney, you should select someone that you trust to avoid any unintended consequences.
Your agent sits on a fiduciary capacity. If you communicate your intent to your agent, then your agent has a fiduciary duty to abide by your wishes or he or she will be potentially be liable to you for a breach of fiduciary duty.