• A Power of Attorney is a legal document that, when properly notarized, allows a person to give someone else legal authority to act on that person's behalf.
  
• A Power of Attorney can be given to anyone.
  
• The person receiving the authority does not have to be an attorney.
  
• The person who gives the legal authority is called the principal
  
• The person receiving the power is called the attorney- in-fact.

Limited Power of Attorney

A Limited Power of Attorney gives the power to act on someone's behalf regarding a specific thing or under a specific circumstance. For example, a person who must execute documents at a real estate closing, but is unable to be present at the closing may authorize someone to appear and execute documents in his or her place.

General Power of Attorney

A General Power of Attorney gives the power to act in a broad range of circumstances or for a broad number of tasks.

Disability and Power of Attorney

A Power of Attorney can be used even if the principal giving the authority is disabled. Disability is defined in New Jersey as when the principal is unable to manage the principal’s affairs effectively for any following reasons:

• Mental illness;
  
• Mental deficiency;
  
• Physical illness or disability;
  
• Advanced age;
  
• Chronic use of drugs;
  
• Chronic intoxication;
  
• Confinement in a jail or other institution;
  
• Detention by a foreign power;
  
• Disappearance.

In order for a Power of Attorney to continue to be effective or go into effect upon the disability of the principal it must contain the one of two phrases. A Power of Attorney that does not contain one of these phrases will not be effective if the principal becomes disabled:

• “This Power of Attorney shall not be affected by disability of the principal” or;
  
• “This Power of Attorney shall become effective upon the disability of the principal”.

This kind of Power of Attorney becomes effective the moment the principal becomes disabled. An attorney-in-fact who acts without knowing the principal is disabled still legally bind the principal by his or her actions.