Limited Power of Attorney refers to a legal document granting an individual, known as the agent or attorney-in-fact, the authority to act on behalf of another person, known as the principal, for specific and restricted purposes. This type of power of attorney grants the agent a defined scope of authority, restricting them from exercising any powers beyond those explicitly outlined in the document. It allows the principal to delegate certain decision-making powers to the agent, while still retaining control over other aspects of their affairs.
Typically, a limited power of attorney is created to address specific situations or requirements, such as financial transactions, real estate matters, or medical decisions. For instance, if an individual is unable to attend a real estate closing due to travel constraints, they may grant a limited power of attorney to their trusted agent, empowering them to complete the necessary paperwork and sign documents on their behalf.
This type of power of attorney is time-bound and can be drafted with various degrees of specificity, depending on the principal's needs and preferences. It ensures that the principal maintains control over their affairs and can be particularly useful when they need assistance with certain matters but do not wish to grant the agent unrestricted authority.
Overall, a limited power of attorney serves as a legal tool for individuals to designate an agent to act on their behalf for a defined and narrow range of matters, offering flexibility and customized decision-making authority while still protecting the principal's rights and interests.
