Power of Attorney: What You Need to Know

General and Special Powers of Attorney

A General Power of Attorney is a document under which you authorize another person to act on your behalf in a variety of situations. In contrast, a Special Power of Attorney is a document under which you authorize another person to act on your behalf in specific situations only.

A General Power of Attorney is very broad and provides extensive powers. A general statement is included which gives the Agent “full power and authority” to act on your behalf. The document then lists certain powers to make it clear that you intended to grant such broad powers. For a list, see General Powers, below.

A Special Power of Attorney document provides the Agent with only those powers that are listed in the document. For a list, see Special Powers, below.

General Powers

Broad powers granted in a General Power of Attorney can include authority to act with respect to the following subjects:

Real Property.

Tangible Personal Property.

Stocks and bonds.

Commodities and options.

Banks and other financial institutions.

Operation of entity or business.

Estates, trusts, and other beneficial interests.

Claims and litigation.

Personal and family maintenance.

Benefits from governmental programs or civil or military service.

Retirement plans.

Taxes.

In addition, optional powers include powers to:

Maintain and operate business interests.

Employ professional assistance.

Make gifts.

Make transfers to revocable (“living”) trusts.

“Disclaim interests” (this power can be an important estate planning tool that helps avoid estate taxes).

If providing broad powers is not desirable, a Special Power of Attorney, which can be limited in scope, may be more appropriate.

Special Powers

A Special Power of Attorney document provides the Agent with only those powers that are listed in the document, which may include the following special powers:

Create, amend, revoke, or terminate an inter vivos trust.

Make a gift.

Create or change rights of survivorship.

Create or change a beneficiary designation.

Authorize another person to exercise the authority granted under this power of attorney.

Waive the principal’s right to be a beneficiary of a joint and survivor annuity.

Access the content of electronic communications.

Exercise the fiduciary powers that the principal has authority to delegate.

Disclaim or refuse an interest in property, including a power of appointment.

If limiting the Agent’s power to this list is not desirable, a General Power of Attorney, which is broader in scope, may be more appropriate.

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