what is a special power of attorney 
a special power of attorney is a legal document that authorizes one person called an agent or an attorney in fact to act on behalf of another person known as the principal under specific clearly laid out circumstances also known as a limited power of attorney lpoa a special power of attorney allows an individual to give another person the ability to make certain legal or financial decisions on their behalf understanding special power of attorneya power of attorney refers to an agreement between two individuals that allows one individual to act on the other s behalf for example you might want a power of attorney if you are out of the country and unable to carry out a business transaction yourself or if your abilities are limited by a medical condition the person who initiates a power of attorney whether in oral or written form is referred to as the grantor or principal the authorized individual named in the agreement is referred to as the attorney in fact or agent in the case of a special power of attorney the actions that the agent can take are limited to very specific circumstances because this type of power of attorney is limited to what has been laid out in the signed document it is particularly important that the principal is very clear about the powers that they want the agent to have additionally the principal may create more than one special power of attorney naming a different individual in each one general power of attorney vs special power of attorneywhile a special power of attorney gives the agent authority for a limited set of actions under a restricted set of circumstances such as buying or selling a home withdrawing money from an account or running a business a general power of attorney is more broad a general power of attorney grants the agent the legal right to make all financial and legal decisions on behalf of the principal an individual who will be out of the country for a year may give an agent extensive powers to carry out transactions such as personal and business financial transactions bill payments life insurance purchases charitable donations real estate management and the filing of tax returns a special power of attorney may need to be notarized to have legal authority special considerationsa power of attorney becomes ineffective if its principal dies or becomes incapacitated meaning the principal is unable to grant such power due to an injury or mental illness however a special power of attorney can be made durable a durable power of attorney is one that authorizes the agent to continue acting on behalf of the principal even after the principal becomes incapacitated for instance due to a head injury or alzheimer s disease under a durable power of attorney the authority of the agent to act and make decisions on behalf of the principal continues until the principal s death for an individual who does not already have a durable power of attorney in place and does not have the capacity to execute a special power of attorney the court will impose a conservatorship or a guardianship to act on their behalf 