What is Limited Power of Attorney?

A Limited Power of Attorney grants a specific action or matter for the agent to carry out which
typically does not have long-lasting power. The agent will have “limited” authority to act on
behalf of the Principal.

A Limited Power of Attorney is also referred to as the following:

 Special Power of Attorney, Specific Power of Attorney, Limited POA/Limited P.O.A.

Types of situations to use a Limited Power of Attorney Form:

 Due to illness or absence, allowing your agent to sign a document or contract on your
behalf.
 Grant a period of time for your agent to carry out personal or business operations.

The Basics
A Limited or “Special” Power of Attorney grants one or more individuals (agent) specific
guidelines of transactions to be made on your behalf (the principal);  ensure you select a trusted
agent to be appointed for the responsibility. The Limited Power of Attorney should specify the
purpose(s) in detail. Providing regulations on transactions that cannot be executed will protect
the principal. The Limited Power of Attorney can be authorized for a single transaction or
provide a larger span of capacity. Common reasons for a Limited Power of Attorney are financial
or real estate management, traveling out of the country, and to sign or obtain documentation on
your behalf (i.e., Internal Revenue Service IRS, Social Security Administration SSA). However,
some financial institutions or agencies may have additional legal forms required to complete the
transaction.

When completing a transaction, if any other party is concerned, there will be an Indemnification
Clause advising of the validity of the document. An indemnification clause can also protect the
principal in the event the agent takes adverse action with the Limited Power of Attorney. For
healthcare purposes, the Healthcare Insurance Portability and Accountability Act (HIPPA) may
be added.  A Limited Power of Attorney can be obtained online or with the assistance of legal
counsel, witnesses may be needed and they are required to be legal adults. This is dependent on
your state of residence. Of note, if moving to a new state you will need to consult with local
attorneys to ensure the validity of the Limited Power of Attorney.

Unlike the traditional Power of Attorney, the duration of a Limited Power of Attorney is for a
specified amount of time or upon completion of the defined task. The date will be documented
and agreed upon or it can be repealed by the principal. Under certain circumstances, the Limited
Power of Attorney will automatically become null.  These include your death, the agent’s death,
and you become mentally or physically incapacitated. In accordance with your state law, it can
also be automatically revoked if the agent was the spouse and you have since become divorced.
How to Make Limited Power of Attorney
Assigning limited power of attorney is the act of having someone else step in your place to
conduct a single task. In most cases, the designation is for a single use case or has a specific start
and end date.

Step 1 – Decide the Powers

Make sure to carefully word the responsibilities of the Agent to ensure that he or she has the
rights to act in your place for only the tasks needed. If the task is for a one (1) time use or has a
specific end date, the power of attorney should have this included.

Step 2 – Select the Agent

It’s important to choose someone that can be trusted and usually involves a family member or
friend. If the responsibility involves a higher valued asset it’s recommended to select someone
that is the beneficiary in the estate.

Step 3 – Write the POA. Use the Instructions and fill-in with the agent that will be used in
the document and be sure to inform them the responsibilities and terms of the document. There
should be at least two (2) copies of the form made for each of the parties.

Step 4 – Signing Sign this form falls under “financial” related use, it must be authorized in
accordance with State ‘Durable’ Laws. Which usually means the form must be signed with the
principal in front of a notary public, witness(es), or both.

Step 5 – Using the Form Like any other power of attorney assignment, whenever the agent
uses their right to act in the presence of the principal this form must be presented to the other
party. Otherwise, the agent is not legally allowed to act for the principal.

If the agent is signing a document on behalf of the principal, they must sign and then use the
phrase below the signature line “Acting as POA”.

The completed and signed limited power of attorney form should always be kept in a safe and
easy to access place while not in use.

Revoking a Limited Power of AttorneyUpon death or

incapacitation, your limited power of attorney form will be revoked automatically. There are
mainly three different ways a Principal can revoke (cancel) their power of attorney. (1) Enter a
revocation date into the form. Upon the specified date, the document will no longer be valid and
your agent will no longer be able to act on stated powers. (2) When the agent’s action or
responsibility has been completed, the limited power of attorney will cease to be valid. (3) The
Principal may complete a Revocation of Power of Attorney Form at any time to cancel their
limited power of attorney.
How to Write a Limited Power of Attorney
Step 1 – Basic Information of Principal and Agent

In the first (1st) portion of the document, the principal should enter their full name and social
security number (SSN). Afterward, the attorney-in-fact’s full name including their address and
telephone number (preferably their cell phone) should be written.

Step 2 – Powers

The principal should enter the details of what their agent is allowed to handle (up to three (3)).
The principal should initial and state how the form may be revoked, whether it can be by a
revocation being authorized, when the task or objective has been completed, and/or at a
particular date. Each option that is selected must be initialed and the box must be checked.Below
enter the State of jurisdiction the attorney-in-fact will be performing his actions and the principal
should sign the bottom of the page.

Step 3 – Revocation

A limited power of attorney will automatically be revoked upon death or incapacitation by

default. Additionally, you need to explain how you want the powers to be revoked when you no
longer need your agent to act on your behalf. Your Limited Power of Attorney can be revoked in
the following ways:

 By the Principal at any time by authorizing a Revocation.

 When the stated Power has been completed.
 On a specified date.

Step 4 – State Law

Whichever state the Principal resides, should be the state entered into the document. The laws of
your state will be the governing laws overseeing your limited power of attorney.

Step 5 – Acceptance of Appointment

The Acceptance of Appointment is required in some States for the attorney-in-fact to confirm
their duties to act in accordance with the written document. The signature (along with the
principal’s on the first (1st) page) should be authorized in front of either two (2) witnesses or a
notary public (including their Seal). Once complete the form may be used until the acts are
complete or on an expiration date.