Author: Andrea Miller
ReviewedBy: Carina Jenkins

Limited power of attorney is a legal arrangement in which you give another person the legal authority to act on your behalf in certain matters. It establishes specific areas in which that individual can make decisions for you.

You can create a limited power of attorney specifically for health care decisions, financial management, real estate transactions or other legal matters. A limited power of attorney can also be used to grant someone authority to perform specific acts on your behalf. For example, instead of giving someone power to handle all of your financial affairs, a limited power of attorney might grant authority to cash checks or sell a car on your behalf. Also, be sure to establish an end date for the power of attorney arrangement.

Why do you need a limited power of attorney?

Having a limited power of attorney gives you flexibility in handling your affairs while maintaining control. The designated individual can only perform the duties you outline in the limited power of attorney document, so you must be specific when detailing the responsibilities, expectations and limitations of this role. 

For example, if you want to sell a property you own in a different state, you might grant limited power of attorney to a trusted family member so that they can handle the transaction for you. If you need someone to handle your finances while you travel to another country for an extended period, a limited power of attorney can put the necessary parameters in place. 

What does a limited power of attorney include?

Each state has its own regulations for limited power of attorney. In general, the document should establish the type of power of attorney, the date of creation, the date you want the arrangement to start and end, the name of the person you’re choosing to act on your behalf and your legal name. It should also cover the scope of the power of attorney and detail the wishes and preferences the designated individual should follow when making decisions for you.