General power of attorney is a document by which you give right to another person for making financial and business decisions on behalf of you. The agent appointed by you will act as the authorized legal representative for addressing all legal and financial problems till the power is terminated. By signing the document, your agent will be given full authority for making decisions for you. He is authorized for signing checks and letters on your behalf and executing contracts also.
The ordinary POA may terminate if you become incapacitated or mentally unstable but general POA are least affected even if you are mentally ill. In case you are not executing a document of general power of attorney your spouse or family may be left helpless when emergency situation arises in case of your death. They cannot legally manage the property or your assets. If anything happens to you then the family has no other option but moving to court for appointing a ‘guardian’ for managing the affairs. The man appointed by the court need not necessarily take into account the wishes of your family for managing the assets. To prevent this kind of episode, it is necessary to create a POA agent on your behalf who will act according to your wishes.
The agent chosen by you should be trustworthy and well known person. He or she can be your spouse or any other family member who is above 18 years of age. Many couples have joint accounts in the bank which automatically gets transferred to the existing person, if something happens to any one of you.
The family will be already in trauma if something goes wrong with you. They should not be burdened with the trouble of approaching the court for appointing a guardian to manage the property and asset.