Special Power of Attorney

Definition

A special power of attorney (also called a limited power of attorney) is a legal document that authorizes a named agent (attorney‑in‑fact) to perform specific tasks or make certain decisions for the principal. Its scope and duration are narrowly defined in the document.

Key takeaways

• Grants authority only for specific actions and circumstances.
• Can be limited by time, task, or condition.
• Can be made durable to remain effective if the principal becomes incapacitated.
• Often must be signed with witnesses or notarized, depending on state law.
• Store copies securely and give relevant parties (banks, lawyers, doctors) copies.

How it works

• Principal: the person who grants authority.
• Agent (attorney‑in‑fact): the person authorized to act.
• The document spells out exactly what the agent may do (for example, sell a home, handle a single bank transaction, or manage a specific business matter).
• Because authority is limited, clear, precise wording is essential to avoid misunderstandings.
• A principal can create multiple special POAs for different tasks or agents.

Special vs. general power of attorney

• Special (limited) POA: authority is restricted to specific acts and timeframes.
• General POA: authority is broad and may cover most or all financial and legal matters.
• Which to use depends on how much control you want the agent to have.

Durability, termination, and incapacity

• A standard special POA typically ends if the principal becomes incapacitated.
• A durable special POA includes language that lets the agent continue acting if the principal becomes incapacitated, and it remains effective until revoked or the principal dies.
• If no durable POA exists and the principal becomes incapacitated, a court may appoint a guardian or conservator to manage affairs.
• All POAs end at the principal’s death; estate matters then follow the will and probate process.

How to get a special power of attorney

1. Decide whether you need a limited or durable POA and which powers to grant.
2. Choose an agent you trust; discuss responsibilities and expectations.
3. Determine whether multiple agents are needed and whether they will act jointly or separately.
4. Use a state‑specific form, an attorney, or a reliable template. Confirm witnessing and notarization requirements for your state.
5. Execute the document according to state rules (signatures, witnesses, notary).
6. Make physical and digital copies. Give the agent and relevant institutions (bank, attorney, real estate/title company) copies and keep originals in a secure place.

Risks and safeguards

• An agent with authority can bind the principal by contracts or transactions they sign; misuse can be hard to undo.
• Choose an agent with integrity and, if possible, limit powers to only what’s necessary.
• Consider requiring accounting, periodic reporting, or co‑agents to add oversight.
• If an agent abuses their power, the principal (or interested parties) may sue for breach of fiduciary duty and seek damages or removal of the agent.

Cost

• Simple templates: low cost or free; you may only need to pay for notarization.
• Online services: typically tens of dollars for document preparation.
• Attorney preparation: often several hundred dollars; complex or bespoke documents cost more. Hourly rates for estate/family lawyers can vary.

Bottom line

A special power of attorney is a practical tool for delegating narrowly defined legal or financial tasks. Draft the document carefully, choose a trustworthy agent, confirm state execution requirements, and consider making it durable if you want authority to continue during incapacity. When in doubt, consult an estate planning attorney to ensure the POA matches your intentions and legal requirements.