A power of attorney limited in some fashion, most commonly in regards to a period of time or a particular asset.
Powers of attorney are stated to be general or limited, the former distinguished from the latter in that there are no limitations set out with regards to the powers the donor gives to the attorney in the power of attorney.
Like any agency contract, which a power of attorney is, a donor may set such terms and conditions as he or she wishes to.
For example, a power of attorney may limit the powers given to the attorney, Mr. John Doe “as regards only 1 Central Park Way, New York, New York (insert legal description here)” or “as regards only my 36-foot 2007 white Cadillac limousine serial number 9635465MD53” or “for purposes of registering and insuring the vehicle (insert description here)”.
This technique allows a donor to the issue separate powers of attorney with regards to individual assets and to further designate an appropriate attorney for the management of each particular asset.
Of course, where there is a small asset base, the use of multiple limited powers of attorney may be overkill. Remember at all times that a power of attorney creates a financial and legal clone of the donor; not something to be trifled with without proper legal advice.
In particular, statutes and legislation of individual jurisdiction or state differ as to the forms, requirements and scope available to individuals who wish to institute these fabulous estate planning tools; thus, even more important that you consult with a lawyer before attempting to do-it-yourself with any prospective power of attorney.
An improperly drafted power of attorney may well defeat it as third parties will always demand to see a power of attorney before acting upon it. If a power of attorney is suspect, in form or content, the third party will likely decline to act on it, causing been a great disservice to the donor at a time when she or he would have anticipated that the power of attorney would have been most useful.