What is a Power of Attorney?

A power of attorney form is a legal document that is voluntarily entered into by two parties and then is duly certified by a notary public. The person who wrote up the agreement is called the Principal; the person who is 'executing' the agreement is called the Agent. Through the agreement, the agent is given the legal capacity to perform a task for the principal even in his absence.A power of attorney can be very general, or very specific. A scenario that often happens is that a principal will appoint an agent to perform any and all of his legal affairs for a certain period of time. This is usually done when the principal is away on a lengthy business trip and away from his permanent residence. Another scenario it is used it when the principal is ill.Since the agent represents the principal and comparisons can be made to that of an employee, an agent is often called an Attorney-in-Fact, which is also a very popular term for an agent.Also, this agreement is not limited to only individuals, corporations and partnerships are all allowed to be involved in a power of attorney. There are some limitations though, everyone involved must be at least 18 years of age or older and have a normal mental capacity.Most principals understand that it’s not right for you to try and force some one to participate within the scope of the legal agreement just because he/she has signed it. Most people expect that the agent should be entitled to payment for his/her services rendered and reimbursement for some of his/her expenses. An example of when the agent should be compensated is when their purchasing real estate property for you. By virtue of the power of attorney, the agent negotiates a deal, pays for and even signs all the legal documents necessary for the principal. In this case, of course an agent should be compensated and paid.Another good thing to know is that a power of attorney can be cancelled at any time by the principal. Most likely to revoke it all you have to do is fill out a revocation of power of attorney and then have it duly certified by a notary public. It all depends on your state's laws; some states require the above, plus a copy of the original power of attorney with 'REVOKE' written at the top. Another way a power of attorney can be revoked is if the principal wrote a certain period of time for the agreement to be valid before it is no longer valid. Also, the agreement will become null and void if the principal passes away.