Powers of Attorney in 2025: Should You Choose General or Limited Authority?

A Power of Attorney (POA) is one of the most practical and powerful components of any well-rounded estate plan. Unlike a will or trust, which usually comes into play after death, a POA is used while you are alive—often during an unexpected illness, injury, or even just a trip that takes you away from home.

At The Lansky Law Firm, we believe that peace of mind starts with preparation. Understanding the types of Powers of Attorney available—and which one suits your needs—can help you maintain control and protect your finances, even when life takes an unexpected turn.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows you (the principal) to name someone you trust (the agent or attorney-in-fact) to act on your behalf. Depending on the type of POA, this authority could apply to finances, healthcare, or specific legal tasks.

In this article, we focus on financial Powers of Attorney, particularly the differences between general and limited authority.

General vs. Limited Powers of Attorney

General Power of Attorney

A general POA grants your agent broad authority over your financial matters. This may include:

• Managing bank accounts

• Paying bills and overseeing investments

• Buying or selling real estate or other assets

• Filing taxes or handling government benefits

• Making financial gifts (if allowed)

This type of POA is common in long-term planning—especially for aging parents, frequent travelers, or spouses facing medical concerns. However, because of its broad scope, it must be drafted carefully to avoid misuse.

Choosing a trustworthy agent and setting appropriate limits is key.

Limited (Specific) Power of Attorney

A limited POA allows you to delegate authority for specific tasks or during a defined period of time. This could include:

• Letting your CPA handle tax matters with the IRS

• Allowing a real estate agent to sign closing documents

• Enabling a family member to pay bills while you recover from surgery

Limited POAs can restrict certain actions such as making large transfers or gifts. This provides clarity and peace of mind that your affairs are being handled exactly as you intend.

Structuring a Limited POA

There are three primary ways to tailor a limited POA:

1. Specific Actions Limit your agent’s authority to clearly defined tasks, such as signing one contract or accessing one account.

2. Time Limits Set a defined start and end date—ideal for travel, temporary incapacity, or short-term needs.

3. Triggering Events (Springing POA) This POA only becomes active after a specific event, such as a physician's declaration of incapacity. Until that moment, the agent has no authority.

Choosing the Right POA for You

There’s no one-size-fits-all solution.

• A general POA offers broader support but requires deep trust and oversight.

• A limited POA offers precision and control, especially for short-term or specific needs.

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In either case, be sure to:

• Choose a responsible and reliable agent

• Clearly communicate your intentions

• Review and update your POA regularly—especially after major life changes like marriage, divorce, retirement, or relocation

Stay Compliant With Tennessee Law

In recent years, many states—including Tennessee—have updated their POA laws to include stricter rules on gifting, fiduciary duties, and document execution. These changes are designed to protect the principal and ensure agents act responsibly.

At The Lansky Law Firm, we ensure your POA meets the latest legal standards and truly reflects your wishes.

Final Thought

A Power of Attorney isn’t just another form—it’s a powerful safeguard for your finances, your independence, and your peace of mind.

If you haven’t reviewed or created a POA recently, now is the perfect time to ensure your plan is up to date and aligned with your goals.

Let us help you prepare with confidence.

Visit Us: 6800 Poplar Ave #225, Memphis, TN 38138 Call Us: (901) 767-7006 Learn More: www.lanskylawfirm.com

The Lansky Law Firm Peace of Mind through Preparation.