A power of attorney is a legal document that grants another person the right to act on your behalf. It can be useful if you’re unable to be present or carry out a specific action yourself, such as collecting a package, selling a property, or managing your financial affairs. There are different types of POA’s for individuals, covering various needs and granting different levels of authority.

Different types of powers of attorney for individuals

General power of attorney

A general power of attorney is the broadest form of POA. It gives the appointed person the right to handle virtually all matters on your behalf. This means they can make financial decisions, buy or sell property, and carry out other important actions in your name. General POA’s are relevant if you need someone to manage all your affairs without having to create a separate POA for each task. However, it’s important to draft your general POA carefully and clearly to avoid misunderstandings.

Special power of attorney

A special power of attorney applies to a particular situation or a specific task. This could be something simple, like picking up a package. It could also be something more extensive, like selling a property in your name. This type of POA is limited to the assignment stated in the document. Special powers of attorney are practical when you need temporary assistance without granting the attorney-in-fact any other authority.

Enduring power of attorney

An enduring power of attorney takes effect only if you’re no longer able to manage your own affairs due to illness, declining health, or another reason that affects your decision-making capacity. The person you’ve appointed will have the right to make decisions on your behalf in financial and personal matters. With an enduring POA, you can be confident that your affairs will be handled according to your wishes.

Letter of authority to transfer

A letter of authority to transfer gives the attorney-in-fact the right to delegate their assignment to another person. This means a third party can carry out the assignment if the original attorney-in-fact is unable to do so. However, for a letter of authority to transfer to be valid, the main power of attorney has to permit delegation. A letter of authority to transfer is particularly useful when flexibility is important to ensure the assignment can be completed.

How we help with powers of attorney

Legal advice on choosing the right type of document
We help you choose the right type of power of attorney based on your needs, and explain the different authorities each type grants.

Drafting powers of attorney
Our lawyers will draft any POA for you, and you can be confident that the document is properly drafted and meets all formal requirements to be legally valid.

Reviewing powers of attorney
If you already have a POA and want to make sure it’s correctly worded and legally sound, we’ll review it for you and suggest adjustments if necessary.

FAQ about powers of attorney

What’s the difference between a general and a special POA?
A general power of attorney grants broad authority across all areas. A special power of attorney, on the other hand, applies only to a specific task, such as selling a property or carrying out a particular transaction.

When is a letter of authority to transfer necessary and how does it work?
A letter of authority to transfer is useful when the original attorney-in-fact can’t carry out the task and wishes to delegate it to someone else. However, the main POA must explicitly allow the assignment to be delegated to another person.

Can I revoke an enduring power of attorney or a letter of authority to transfer if I change my mind?
Yes, as long as you have decision-making capacity, you can revoke or amend any type of POA at any time.