General Power of Attorney
A general power of attorney is very broad and provides extensive powers to the person or organization you appoint as your agent. These powers usually include:
- Handling banking transactions
- Entering safety deposit boxes
- Handling transactions involving U.S. securities
- Buying and selling property
- Purchasing life insurance
- Settling claims
- Entering into contracts
- Exercising stock rights
- Buying, managing or selling real estate
- Filing tax returns
- Handling matters related to government benefits
You also have the option to grant the following additional powers to your Agent:
- Maintaining and operating business interests
- Employing professional assistance
- Making gifts
- Making transfers to revocable ("living") trusts
- Disclaiming interests (this has to do with estate planning strategies to avoid estate taxes)
A general power of attorney is usually used to allow your agent to handle all of your affairs during a period of time when you are unable to do so. For example, when you are traveling out of the state or country or when you are physically or mentally unable to handle your affairs. A general power of attorney is frequently included as part of an estate plan to make sure that you have covered the possibility that you might need someone to handle your financial affairs if you are unable to do so.