Meaning of Power of Attorney
What is Power of Attorney:
The power of attorney is a private document in which a trusted person is allowed to act on behalf of another.
The power of attorney is not a notarized document, therefore its value is representative and it is of little formality. However, it must be presented at an institution or company in order to endorse the letter.
The power of attorney is usually used when a person cannot attend to certain personal matters and needs the support of someone trustworthy and who is able to delegate those responsibilities, functions or steps that they cannot take care of for a certain time.
Among the responsibilities that can be delegated through the power of attorney are administrative, commercial, legal and even domain acts, that is, the assets of the person granting said letter can be disposed of.
Scope and limitations of the power of attorney
The power of attorney, as it is not a notarized document, may or may not be limiting for the exercise of certain functions by that third person to whom a series of responsibilities was delegated. However, in general terms its scope and applications are usually broad.
The power of attorney can be of a general or limited nature according to the need of the grantor. Therefore, with a general power of attorney the responsible person can act on behalf of his grantor in different situations and areas with few restrictions.
But, if you have a limited power of attorney, that representative person can only act and carry out activities or steps related to certain specific matters.
For example, when a person receives a real estate through an inheritance and cannot take care of it, they can make a limited power of attorney to leave another person responsible for leasing and managing everything related to the property.
A general power of attorney, for example, can be drawn up when an elderly person needs another trusted person to help him collect his retirement or pension and in turn do all the necessary commercial procedures.
However, although the power of attorney responds as a solution for some circumstances, it also has certain limitations for the person to whom responsibility has been delegated.
Among the limitations that exist are that the power of attorney does not allow the representative to act against the will of the grantor, who in turn can make a decision, at any time, on the matters that he delegated to that third person.
On the other hand, the power of attorney loses its validity when the grantor dies, therefore, the person in charge is neither the heir nor the representative of that person with whom there was a commitment for a time.