Call Us Now
Email Us Now
Limited Power of Attorney
Limited Power of Attorney in Bloomington, MN
Helping Families Throughout Minneapolis, Edina, Richfield, and Surrounding
A limited power of attorney grants specific authority to act on behalf of another person. This authority is limited to a single act or a single transaction, and it may be limited to a specific purpose. For example, if a person is going on vacation and needs someone to handle their mail or pay their bills, they can grant limited power of attorney to someone they trust. This limited power of attorney will only last as long as it is needed, and it will only apply to the specific duties that were assigned.
A limited power of attorney is often used to make sure another person can handle financial transactions while someone is out of town or recovering from an illness. It can also be used to make sure someone can handle a single real estate transaction, such as buying or selling a house.
Limited power of attorney can be a useful tool, but it is important to be aware that it is not a substitute for a will. If someone dies while they have limited power of attorney, their estate will be distributed according to the terms of their will, not the terms of the limited power of attorney.
At , our Bloomington limited power of attorney lawyers can draft legal documents tailored to each client’s individual needs. Call 612-448-3898 for a free consultation or contact us online.
When to Use Limited Power of Attorney
Creating a Limited Power of Attorney (LPOA) is a strategic move for various reasons. It provides preparedness for unexpected incapacitation or simply when you’re temporarily unavailable.
The strength of an LPOA lies in entrusting a highly trusted individual with the authority to handle tasks, from the simplest to the most complex. For instance, many appoint Investment Advisors as LPOAs, granting them legal authority for decisive investment management. Moreover, the flexibility to set time restrictions, even for specific periods like a month during international travel, is a significant advantage of LPOAs.
Limited power of attorney is a useful tool for a number of different situations. Some of the most common uses for this document include:
- Ensuring financial management when going out of town.
- Enabling someone to oversee a specific real estate deal.
- Securing financial management during illness recovery.
- Authorizing financial handling during incarceration.
- Facilitating financial management during nursing home residency.
- Granting financial oversight during military deployment.
- Safeguarding financial affairs during educational pursuits.
When Not to Use Limited Power of Attorney
There are some situations where it might seem like limited power of attorney would be useful, but it is not an appropriate option. In some cases, there is no alternative to using a will, and in other cases, it is better to use a durable power of attorney. For example, if someone wants to make sure their financial affairs can be handled while they are in the hospital for a long illness, limited power of attorney is not an appropriate option. Instead, it would be better to draft a durable power of attorney. This document grants authority to handle financial transactions for as long as the person named in the document is alive.
Limited power of attorney is not an appropriate option when:
- A person requires extended financial transaction management.
- A person needs financial handling for a distinct purpose.
- A person must manage financial transactions on behalf of another individual.
- A person is tasked with managing finances for a designated duration and purpose.
- A person is entrusted with handling financial transactions for a specific individual, time frame, and purpose.
What to Include in Limited Power of Attorney
When drafting a limited power of attorney, it is important to be as specific as possible about the duties that are being assigned. It is also important to include any limitations on the authority that is being granted. For example, it might be important to specify that the limited power of attorney does not apply to real estate transactions, or that it only applies to transactions over a certain dollar amount. It is also important to specify an expiration date for the limited power of attorney. Once that date has passed, the authority granted in the document will no longer apply.
Things to Include:
- The grantor’s name in the power of attorney.
- The recipient’s name in the power of attorney.
- Precise responsibilities being delegated.
- Any constraints on the granted authority.
- The designated authority’s expiration date.
- Expiration date of other granted powers of attorney.
- Signature of the grantor.
- Signature of the recipient.
- Signatures of two witnesses.
When to Draft a Limited Power of Attorney
Limited power of attorney can be a useful tool for a number of different situations. However, it is not a substitute for a will. If someone dies while they have limited power of attorney, their estate will be distributed according to the terms of their will, not the terms of the limited power of attorney. If someone wants to make sure their estate is distributed according to their wishes, they should draft a will. If someone wants to make sure their financial affairs can be handled while they are out of town, recovering from an illness, or otherwise unable to handle their own affairs, they should consider durable power of attorney. This document grants authority to handle financial transactions for as long as the person named in the document is alive.
Why Our Clients Choose Us
Our mission is to become an essential, trusted partner in our clients’ lives. We achieve this by leveraging our experience, expertise, and tireless work ethic.
- Collaborative Approach We aim to be your trusted partner. We work together with our clients to find the best solution for them and their families.
- Individualized Guidance Our attorneys get to know you and your family to understand what options are right for you.
- Lasting Relationships Estate planning needs change throughout every stage of your life and our team will be with you every step of the way.
Hear what it’s like working with our firm from our clients themselves!