Types of Powers of Attorney
An Agent appointed by the general Power of Attorney acts on behalf of the Principal in any and all matters, as allowed by the law. The agent under a general Power of Attorney agreement may be authorised to take care of issues such as handling bank accounts, signing checks, selling property and assets like stocks, filing taxes, etc.
A limited Power of Attorney gives the Agent the power to act on behalf of the Principal in specific matters or events. For example, the limited Power of Attorney may explicitly state that the agent is only allowed to manage the principal's retirement accounts. A limited Power of Attorney may also be limited to a specific period of time, e.g., if the principal will be out of the country for some time.
Most Powers of Attorney allow an Agent to represent the Principal in all property and financial matters as long as the Principal's mental state of mind is good. If a situation occurs where the Principal becomes incapable of making decisions for him or herself, the Power of Attorney agreement would automatically end.