A power of attorney is a document that shows the name of the person who has the authority to act on your behalf when conducting important transactions for you. When using a power of attorney, the other party is expected to act with utmost integrity. Below are some of the benefits of power of attorney;
Eases The Burden Of Decision Making
A
power of attorney helps to alleviate the burden of decision making when decisions need to be
made. For example, in a company, the board of directors is required to be present at all meetings. However, sometimes that is not possible, and in some meetings, the board is required to make important decisions for the company. It becomes virtually impossible to communicate everything to the board, and therefore, the company attorney is given the power of attorney so that they can sign on behalf of the board members. That also saves them the time and effort of being present in all board meetings while they could be working.
Monetary Transactions
When the one signing the legal document is unable to manage their finances, the attorney-in-fact will handle the financial transactions on their behalf. The document gives them the right to manage their assets, acquire investments and even sell their property when need be.
Health Issues
A power of attorney is essential when making decisions that are health
related. It is referred to as a medical power of attorney. The document will designate a trusted person to make vital health care decisions for the individual who signed the documents. The attorney-in-fact will make the decision only when the principal is medically incapable of making the decision for themselves. However, decisions that are related to convulsive treatment, abortion, admission in a mental institution and psychosurgery cannot be made. If the principal is on life support, the attorney-in-fact can decide whether the plug can be pulled or not.
Family Matters
Sometimes in a marriage, couples may be in a long distance relationship due to professional reasons; therefore, they end up living apart. A power of attorney will be significant to them because it will give one of them the power to handle their finances or use the money they have in the case of an emergency. In addition to that, they can claim a bank account or run the household if need be. That also shows the level of trust in that relationship.