A power of attorney is a powerful legal tool that gives another person the authority to act on your behalf in certain situations. These documents are associated with estate planning, but they’re also used in real estate closings and a variety of other common situations. Below are answers to some frequently asked questions about powers of attorney, the restrictions that apply, and how to avoid potential problems.

Your Guide to Understanding Powers of Attorney

What does being a power of attorney entail?

Most powers of attorney give the holder, known as the attorney-in-fact or agent, the legal authority to perform a specific task. For instance, you might give your spouse a power of attorney to sign legal documents at a real estate closing or give your business owner the ability to enter contracts on your behalf.

Who may serve as a legal agent?

Holding powers of attorney requires no special training or qualifications, and any adult may fill the role. Because the actions of your agent may impact your financial future and other important affairs, it’s important to choose someone you trust to fulfill the role responsibly.

Can a power of attorney be challenged?

Powers of attorney can be revoked at any time if the principal is mentally competent to make their own legal decisions. However, if you believe the agent is not acting in the best interests of the principal, you can challenge the document in court. Keep in mind that actions taken by the agent while a power of attorney was in effect cannot be reversed.

Do I need an attorney?

Each state requires powers of attorney to meet certain standards of authentication, and some require the document to contain certain statutory language. Hiring an attorney is the best way to ensure that your power of attorney is legally valid and that your agent will have the authority they need.

With over a decade of experience and an extensive background in real estate law, Bernardini Law P.C. provides effective and insightful legal services to clients throughout the Greater Boston area. Whether you’re buying a home or need help drawing up a power of attorney, their legal team will guide you through the process and ensure your interests are protected. Visit their website for a closer look at their services and experience or call (978) 794-5525 to schedule an appointment.