What would happen if you suddenly couldn’t take care of your own bills, sign important papers, or make crucial decisions? Who would step in to handle your affairs if you were unable to? It’s a tough thought, but it happens more often than you might think. In fact, one in three adults will likely face a situation where they need someone to make decisions for them due to illness, age, or other reasons.

So, what’s the solution? How do you make sure someone you trust can act on your behalf when you need them most? The answer could be a general power of attorney. But if you’ve never written one before, it might seem confusing. What does it include? How do you ensure it’s legally valid? Should you hire a lawyer or do it yourself?

Don’t worry! In this guide, we’ll check the process of creating a general power of attorney in simple, easy-to-follow steps. We’ll help you understand everything you need to know so you can feel confident that your affairs will be taken care of, even if you can’t manage them yourself.

What is General Power of Attorney (GPA)?

A General Power of Attorney (GPA) is a legal document that lets you give someone else the authority to make decisions for you when you’re unable to do so. This person is called your agent or attorney-in-fact. The authority you grant is typically wide-ranging and can cover things like managing finances, signing documents, or making legal decisions on your behalf.

• What can an agent do? Your agent can handle tasks that you would normally take care of, like paying bills, managing your investments, or handling legal matters.
• How long does it last? The General Power of Attorney is usually valid as long as you’re mentally capable of making decisions. If something happens and you can’t make decisions for yourself, the authority stops unless the document specifically says it’s a Durable Power of Attorney.
• Can I change it? Yes! You can revoke or cancel the General Power of Attorney at any time as long as you’re still mentally competent. Just make sure to let your agent and any organizations that use it know.

For Example; Imagine you’re going on a long trip abroad, and you need someone to handle your finances while you’re away. By signing a General Power of Attorney, you can authorize a trusted friend or family member to pay your bills, manage your investments, and take care of other important tasks on your behalf.

When Can You Use General Power of Attorney (GPA)?

You can use a General Power of Attorney (GPA) in a variety of situations, but it’s most commonly used when you’re unable to manage your own affairs due to illness, injury, travel, or other reasons. Let me explain few examples of when you might need one:

• Incapacity: If you become seriously ill, injured, or unable to make decisions for yourself, your agent can step in to manage your financial, legal, and personal affairs. This is often the case for individuals in hospitals or long-term care.
• Traveling Abroad: If you’re going to be out of the country for an extended period and won’t be able to handle your affairs, you can use a GPA to give someone permission to act on your behalf.
• Managing Finances: If you find yourself overwhelmed with bills, property management, or other financial matters and need help, a GPA can allow someone to take over these tasks.
• Legal or Business Decisions: If you’re busy with business or legal matters and can’t be present to sign contracts or documents, a GPA gives your agent the authority to handle those decisions for you.
• Aging or Deteriorating Health: As people age or their health declines, a GPA can help ensure that someone they trust will manage their affairs if they’re no longer able to do so themselves.

It’s important to note that a General Power of Attorney can be as broad or specific as you need. You can decide what powers you want to give your agent, but once it’s in place, it can be used for anything you’ve authorized—whether you’re temporarily unavailable or permanently unable to manage things on your own.

Why Is General Power of Attorney Important?

Have you ever stopped to think about what would happen if you couldn’t handle your own affairs? Whether it’s because of illness, injury, or even just being out of town, there might be times when you’re unable to make decisions or manage your finances. That’s where a general power of attorney comes in, and it’s crucial for several reasons.

1. It Ensures Your Affairs Are Managed: One of the most important reasons for having a general power of attorney is that it ensures someone you trust can step in and handle your affairs if you’re not able to. From paying your bills to making legal decisions, this document lets your agent take care of the tasks you would normally do.
2. Gives You Peace of Mind: Knowing that you’ve set up a general power of attorney provides peace of mind. You won’t have to worry about what will happen to your property, finances, or important decisions if you suddenly can’t manage them. You’ll know that someone you trust will be able to step in without you needing to give them permission at the time.
3. Avoids Legal Complications: If something happens and you’re unable to make decisions, a general power of attorney helps avoid legal roadblocks. Without it, your family might have to go through a lengthy and costly court process to be appointed as your legal guardian or conservator. This document allows them to act on your behalf without the need for extra legal steps.
4. Helps You Plan for the Future: A general power of attorney is not just for emergencies—it’s also a great way to plan for the future. Whether you’re facing health issues down the road or just want to make sure everything is in place, setting up a GPA now can save a lot of stress later.
5. Flexibility and Control: A general power of attorney gives you the flexibility to choose who you trust and what powers you want them to have. You can limit their authority or make it broad, depending on your needs. This control ensures that you’re not handing over your power completely, but simply making sure things are taken care of when you’re not able to.

So, a general power of attorney is important because it helps you stay in control, ensures your affairs are managed, and prevents future stress for you and your loved ones. It’s a simple step to take now that can make all the difference in an unexpected situation.

What are the Common Mistakes in General Power of Attorney (GPA)?

Here are some common mistakes people often make when setting up a General Power of Attorney, and how to avoid them:

1. Giving Too Much Power: It’s easy to go overboard and give your agent too much control. But that can lead to problems. Be specific about what you want them to handle and what you don’t. Think about the areas you feel comfortable with them taking charge of.
2. Using Vague Language: If your document is unclear, it can cause confusion or disagreements later on. Make sure you’re crystal clear about what your agent can and can’t do. Avoid using broad terms and be as detailed as you can.
3. Choosing the Wrong Person: Your General Power of Attorney is only as good as the person you choose to act for you. If you don’t trust them, it could cause trouble. Pick someone reliable, trustworthy, and who understands what they’re taking on.
4. Not Updating It: Life changes—people get married, have kids, or experience major health events. If you don’t update your General Power of Attorney after these changes, it might not reflect what you actually need anymore. It’s a good idea to review it from time to time.
5. Forgetting to Specify Durability: If you want your General Power of Attorney to still be valid if you become incapacitated, you need to mention that in the document. Otherwise, it could lose its power at a time when you need it most.
6. Not Getting Legal Help: Many people use online templates for their General Power of Attorney, but you might miss something important. Consulting with a lawyer makes sure everything is done correctly and that your document is legally sound.
7. Not Following the Rules for Witnesses or Notarization: Some places require that your General Power of Attorney be signed in front of witnesses or notarized. Skipping this could make your document invalid. Check your local rules before you sign.
8. Appointing Multiple Agents Without Clear Instructions: If you decide to have more than one agent, make it clear whether they can act separately or need to work together. Without clear guidelines, it could lead to confusion or disagreement between them.
9. Overlooking Gift-Making Powers: If you want your agent to have the ability to make gifts on your behalf, you need to specifically mention this. If you don’t, your agent won’t have that power, even if it’s something you want them to do.
10. Using a Generic Form: A General Power of Attorney isn’t a one-size-fits-all document. Your needs and circumstances are unique, so make sure your document reflects that. Don’t just use a generic form without customizing it.

By being aware of these mistakes and making sure you avoid them, you can create a General Power of Attorney that truly works for you and protects your interests.

FAQs for General Power of Attorney (GPA)

1. What is a General Power of Attorney?

A General Power of Attorney (GPA) is a legal document that gives someone (your “agent”) the authority to act on your behalf in various matters, such as financial decisions or legal actions, when you are unable to do so.

2. How do I create a General Power of Attorney document?

To create a General Power of Attorney:

• Choose a trusted agent to represent you.
• Clearly specify the powers you are granting (e.g., managing finances, selling property).
• Sign the document in front of a notary or witnesses, depending on your local laws.
• Keep a copy for your records and provide one to your agent.

3. Can I use a General Power of Attorney for real estate transactions?

Yes, a General Power of Attorney can be used for real estate transactions. It gives your agent the ability to buy, sell, or manage real estate on your behalf, as long as the powers are specifically stated in the document.

4. How is a General Power of Attorney different from a Durable Power of Attorney?

A General Power of Attorney ends if you become incapacitated, whereas a Durable Power of Attorney remains in effect even if you lose the ability to make decisions due to illness or injury.

5. Can I limit the powers of a General Power of Attorney?

Yes, you can specify which powers your agent has. For example, you might allow them to handle your financial matters but not make healthcare decisions. It’s important to be clear about what you want them to do.

6. How do I revoke a General Power of Attorney?

To revoke a General Power of Attorney:

• Inform your agent and any institutions that may rely on it (e.g., banks).
• Fill out a revocation document and notify your agent in writing.
• It’s also a good idea to destroy any copies of the original document.

7. Can a General Power of Attorney be used for healthcare decisions?

Generally, a General Power of Attorney is used for financial and legal matters. If you want someone to make healthcare decisions on your behalf, you would typically use a Healthcare Power of Attorney or Medical Power of Attorney.

Create All Documents in Minutes with Draaft: Your All-in-One Solution for Effortless Document Drafting

Draaft is your go-to platform for effortlessly creating high-quality legal and business documents. Whether you’re a business owner, entrepreneur, or individual looking to simplify your paperwork, Draaft makes the process fast, simple, and error-free. Here’s why Draaft is the best choice for all your document needs:

• Fast and Efficient: Say goodbye to long waits! Create professional documents in just minutes without the hassle of complicated formatting or legal jargon.
• Comprehensive Templates: Access a wide variety of templates for everything from contracts and agreements to NDAs and Power of Attorney forms, all tailored to fit your needs.
• Simple Customization: Easily customize templates with straightforward prompts and editable fields, so you can make sure your document fits exactly what you need.
• Error-Free Documents: Draaft automatically formats and structures your documents to ensure they’re professional and clear, minimizing any chances of error.
• User-Friendly: With an intuitive interface, Draaft is designed to be simple to use—even for those who have never drafted a document before.
• Cost-Effective: Why spend money on expensive legal services? Draaft allows you to prepare your documents independently, saving you money while getting the same high-quality results.
• Secure Storage: Safeguard all your important documents with Draaft’s secure cloud storage, giving you easy access whenever you need it.
• Expert Support: If you need extra reassurance, consult experts directly through the platform to fine-tune your documents and ensure they meet your needs.

With Draaft, creating legal and business documents is no longer a stressful task. Whether you need a  General Power of Attorney form, business agreement, or any other legal document, Draaft streamlines the process for you—quickly, easily, and affordably.