What is a power of attorney? It is a legal document that allows someone else to act on your behalf. The person you give the authority to is known as your agent or proxy in fact. Depending on the state you live in, the power of attorney may be applicable to the state of residence of the principal, such as your father. A power of attorney can be used for a variety of purposes, such as real estate transactions, tax returns, and managing property.
For example, if you are buying or selling a property, you can use a real estate power of attorney to surrender your rights in relation to the negotiation and transaction at closing. Your agent may also have the authority to make donations on your behalf, as well as other actions that are governed by state law. In addition, if you own real estate or valuable personal property in a second state, you should consult with an attorney to ensure that your power of attorney adequately covers such assets. You may also need an IRS Power of Attorney (Form 284) if you want someone else to file federal taxes on your behalf.
Furthermore, if you want your agent to manage insurance policies or securities, they will need to present the power of attorney to a broker or banker. POA forms are quite common and relatively easy to complete without the help of an attorney, although it is recommended. If you do not qualify for free legal aid, lawyers who work with wills and estates or elder law should be able to help you. Ultimately, it is important to choose the right power of attorney form for your needs.
