Power of Attorney helps the agent and the third parties know, when the powers are passed to the agent. This is important because some third parties may be cautious about recognizing the agent’s power to act on behalf of the principal.

1. Power of Attorney and Estate Planning
(POA) Power of Attorney is an authorized written contract in which an individual, ‘The Principal’ grants
another individual, ‘The Agent’, authority to act on the principal’s behalf to make decisions related to
private, business or financial use. The main branches of power of attorney include
•Durable power of attorney
•Statutory power of attorney
•Medical power of attorney.
Durable power of attorney : The document of a Durable power of attorney states that the transfer of
power is effective immediately or when the principal is unable to coherently make decisions on his/her
own, due to some disability or is incapacitated. If the durable power of attorney is to become effective
when the principal becomes disabled or incapacitated, the definition of “disability” and “incapacity” should
be included in the power of attorney, along with a method of showing the existence of a disability or
incapacity. This helps the agent and the third parties know, when the powers are passed to the agent. This
is important because some third parties may be cautious about recognizing the agent’s power to act on
behalf of the principal.
Statutory power of attorney : It simply tracks the language from the State’s power of attorney statute. To
make a power of attorney legally binding, it must comply with all the state laws, and should be signed,
dated and notarized by the principal.
Medical power of attorney : It assigns an agent to make health care decisions for the principal, when a
physician certifies in writing that the principal is no longer able to make these important decisions. For
example, Even when a person is unable to make health care decisions while in a severe coma. An agent is
obligated to follow the principal’s instructions when making decisions on his/her behalf and the principal
may revoke the authority granted to the Agent. Two witnesses must be present for the signing of the
written medical power of attorney, and there are limitations on who may serve as witnesses.
Establishing the extent of, and limitations to, the agent’s power is essential to a successful relationship
between the two parties to the power of attorney Austin. An agent can be anyone the principal trusts (who
is typically 18 years old or older) to carry out the principal’s important decisions, which may include
financial, personal tax, or real estate matters. The power of attorney may identify alternative agents if the
named agent dies, becomes legally disabled, resigns, or refuses to act on behalf of the principal. A power of
attorney set the standard for the amount of authority that the agent will have. It should be very specific