The significance of the power of attorney letter and why it matters
In cases where an individual can no longer single headedly manage his own affairs, or is unable to handle large financial assets alone then a power of attorney letter is provided by the principal ( the granter of power) to his agents to whom he would like to give access to his assets. These situations mostly occur in times where the principal is no longer in sound health or physical conditions to carry out his responsibilities. Usually such power of access is given to close family members, friends or loved ones.
The types of access letters
Now a power of attorney letter can be of many types and includes a number of clauses that is required to be clearly understood by both parties. It can either provide general access or limited access. A general access will include all sorts of power handling business given to the agents and a limited access basically means only a certain aspect or more than one aspect of the principal’s assets will be governed and looked after by the agent.
Therefore the attorney letter is very crucial to both the agent and the principal as well. Even the slightest of mistake in such important letters can create the biggest of problems therefore when preparing such a letter it is important to be constructed carefully. The letter must include the name and contact details and necessary information about both the parties and the reasons for the granting of access and most importantly what must be mentioned is the type of access that has been granted and it includes which areas of power.