A power of attorney is a legally binding document that lets you name agents to represent you or make decisions on your behalf. General power of attorney forms applies to a large variety of situations, including estate planning, medical treatment, real estate transactions, court cases and stock market investments.
You can include many details in the form that cover what type of decisions your agent can make, when and for how long. It's also possible to name several representatives simultaneously.
Business owners often use a power of attorney so they can focus on running the company while representatives handle small-but-important tasks. For example, agents can make purchasing or sales decisions related to inventory, real estate, investments, marketing, credit applications and accounts receivables.
A power of attorney is also valuable for individuals as a way to plan for emergencies. If you can't make medical decisions because you're unconscious or injured, an agent you trust can still make decisions for you.
You can choose anyone as your agent in a power of attorney. The person doesn't need legal experience. Many people select a close friend, family member, adult child or spouse to make decisions in emergencies.
Above all, select someone you trust to respect your wishes. Legal professionals don't usually recommend picking your doctors to represent you in medical matters because they have a conflict of interest.
