limited power of attorney

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Limited power of attorney is one of three forms a power of attorney agreement can take, along with general and special. A power of attorney agreement authorizes one party–called the agent or attorney in fact–to act on behalf of the other party, called the principal. Under a limited power of attorney agreement, the agent can only act and make decisions on specified activities, and only to the extent that the principal authorizes. A principal does not need to choose a lawyer to be their agent; attorney in fact differs from an attorney at law. Instead, a principal can grant limited power of attorney to any adult that they choose or place restrictions in the power of attorney.  The principal need only fill out a form, such as this one from Maryland, as well as following their state’s statutory requirements as to witnesses and notarization.

[Last updated in January of 2022 by the Wex Definitions Team]