When to Use a Power of Attorney

when to use a power of attorneyWhen to use A Power of Attorney should not be taken lightly. This is a document which authorizes another individual to act as the agent for the person who signs the Power of Attorney. The agent is authorized to perform the actions and fulfill the duties that are outlined in the Power of Attorney.

 

This Form Library provides durable financial powers of attorney and healthcare powers of attorney and special powers of attorney for a parent or a guardian.

  • Please refer to the pages on these powers of attorney for more specific information on each type of power of attorney
  • Review the checklist and information provided for powers of attorney before beginning the questionnaire process to create one of the power of attorney forms.
  • The language and authority in the powers of attorney in the Form Library are very standard; however, if they do not meet all your requirements or if you wish to be more restrictive in the authority granted to an agent, please call or email Cautela Corporation for additional information and pricing

Benefits, Gifts, Reimbursement and Compensation:

  •  An agent under a power of attorney has an obligation to act for the benefit of the principal (the individual who appointed the agent to manage his or her property) and in the best interests of the principal.
  • If the principal wishes the agent to receive any benefit, those benefits should be clearly identified and initialed in the power of attorney.
  • The powers of attorney in the form library have provisions which the principal may choose to allow the agent to:
    •  (i) make gifts on behalf of the agent,
    • (ii) receive reimbursement of expenses that are made by the agent for the principal, or
    • (iii) receive a reasonable compensation for the agent’s services.
  • If the principal would like the agent to receive any or all of these benefits, both the principal and the witness should initial the appropriate provisions — or leave the initial lines blank for any provision the principal does not want to give to the agent.
Abuse or Misuse of a Power of Attorney:

 

  • An agent may be subject to criminal prosecution if he or she abuses the position held under the power of attorney.
  • An agent may wish to consult with an attorney regarding legal requirements imposed on an agent under a power of attorney.
  • Article 5 of Chapter 5 of Title 14, Arizona Revised Statutes govern financial powers of attorney.
  • Refer to A.R.S. §14-5501 through §14-5507 for more information.

 

  • If a power of attorney is procured by the agent through intimidation or deception, that agent is subject to criminal prosecution and to civil penalties. See A.R.S. §14-5506.
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