The instrument grants defined authority to an agent. Durable powers survive the principal's incapacity, while non-durable powers terminate on it. Scope may be general or limited to specified transactions.
Authority to settle litigation requires express grant in many states.
Alternative Names:
POA|Durable Power of Attorney
Why it Matters?
Authority to compromise a claim requires express language in many states, and a general power may not permit settlement of litigation, which means verifying the instrument's scope before relying on an agent's signature. Settlements executed by an agent without adequate authority are voidable. The power also terminates at death, which requires the personal representative to take over in wrongful death and survival matters.
Frequently Confused with
Related terms
Frequently asked questions
Does a general power permit settling litigation?
When does the power terminate?
