SPA vs. GPA

“Special Power of Attorney vs.
General Power of Attorney”
Outline:
 Introduction
 Definition of Terms
 Definition of Power of Attorney
 How Power of Attorney Works
 Things You Can and Can't Do With Power of Attorney
 General Power of Attorney
 Special Power of Attorney
 Conclusion
 References
Members:
Jerald Miranda
Jhomar Anasco
Kathleen Serraon
Abbyross Tabian
Code: (A006)
Not all powers of attorney are the same. In this article, we’ll discuss what a power of
attorney is, the difference between a special and a general power of attorney, and whether you
can make either power of attorney ―durable.‖ Since each person has unique needs when
creating their estate plan, it’s best to have a thorough understanding of these legal documents
and forms and how best to them to make the plan that’s right for you.
Definition of Terms
Power of attorney (POA) - is a legal document in which the principal (you) designates
another person (called the agent or attorney-in-fact) to act on your behalf to make decisions in
specified matters or in all matters.
General Power of Attorney - gives your agent the authority to handle all your affairs
during a period of time when you are unable to do so, such as when you are traveling out of
the country or when your physical and/or mental health are compromised.
Special power of attorney - means legally authorizing another person, called an agent
or an attorney in fact, the right to act on behalf of another person, known as the principal,
under specific, clearly laid-out circumstances.
Power of Attorney
A power of attorney (POA) is a legal document in which the principal (you) designates
another person (called the agent or attorney-in-fact) to act on your behalf to make decisions
in specified matters or in all matters. It can also refer to the individual designated to act in this
way. The agent can have broad legal authority or limited authority to make legal decisions
about the principal's property, finances or medical care. The power of attorney is frequently
used in the event of a principal's illness or disability, or when the principal can't be present to
sign necessary legal documents for financial transactions.
A power of attorney can end for a number of reasons, such as when the principal dies,
the principal revokes it, a court invalidates it, the principal divorces his/her spouse who
happens to be the agent or the agent can no longer carry out the outlined responsibilities.
Conventional POAs lapse when the creator becomes incapacitated, but a ―durable
POA‖ remains in force to enable the agent to manage the creator’s affairs, and a ―springing
POA‖ comes into effect only if and when the creator of the POA becomes incapacitated. A
medical or healthcare POA enables an agent to make medical decisions on behalf of an
incapacitated person.
[Important: A person appointed as power of attorney is not necessarily an attorney. The
person could just be a trusted family member, friend or acquaintance].
How Power of Attorney Works

Many states require that the signature of the principal (the person who initiates the
POA) be notarized. Some states also require that witnesses' signatures be notarized.
The following provisions apply generally, nationwide, and everyone who needs to create a
POA should be aware of them:
 There is no standard POA form for all 50 states; state law and procedures vary
 All states accept some version of the durable power of attorney
A few key powers cannot be delegated. These include the authority to:
 Make, amend or revoke a will

 Contract a marriage in most states, although a handful of states allow it
 Vote (but the guardian may request a ballot on behalf of the principal)
While the details may differ, the following rules apply coast to coast:
Put it in writing. While some regions of the country accept oral POA grants, verbal instruction
is not a reliable substitute for getting each of the powers of attorney granted to your agent
spelled out word-for-word on paper. Written clarity helps to avoid argument and confusion.
Use the proper format. Many variations of power of attorney forms exist. Some POAs are
short-lived; others are meant to last until death. Decide what powers you wish to grant and
prepare a POA specific to that desire. The POA must also satisfy the requirements of your
state. To find a form that will be accepted by a court of law in the state in which you live,
perform an internet search, check with an office-supply store or ask a local estate-planning
professional to help you. The best option is to use an attorney.
Identify the parties. The term for the person granting the POA is the "principal." The individual
who receives the power of attorney is called either the "agent" or the "attorney-in-fact." Check
whether your state requires that you use specific terminology.
Detail the powers you want to delegate. A POA can be as broad or as limited as the
principal wishes. However, each of the powers granted must be clear, even if the principal
grants the agent "general power of attorney." In other words, the principal cannot grant
sweeping authority such as, ―I delegate all things having to do with my life.‖
Specify whether your POA is durable. In most states, a power of attorney terminates if the
principal is incapacitated. If this happens, the only way an agent can keep his or her powers is
if the POA was written with an indication that it is "durable," a designation that makes it last for
the principal's lifetime unless the principal revokes it.
Notarize the POA. Many states require powers of attorney to be notarized. Even in states that
don't, it is potentially much easier for the agent if a notary’s seal and signature are on the
document.
Record it. Not all powers of attorney must be recorded formally by the county in order to be
legal. But recording is standard practice for many estate planners and individuals who want to
create a record that the document exists.
File it. Some states require specific kinds of POAs be filed with a court or government office
before they can be made valid. For instance, Ohio requires that any POA used to grant
grandparents guardianship over a child must be filed with the juvenile court. It also requires a
POA that transfers real estate to be recorded by the county in which the property is located.
[ Important: If you create a Power of Attorney, you appoint an agent to make decisions for you
in the event that you can't make them yourself. Generally, these decisions are about your
healthcare or your finances. If you pass away, other estate planning documents---usually a
Last Will or a Trust---then take precedence.]
Things You Can and Can't Do With Power of Attorney
What Can a POA Do?
The powers of an appointed agent can be broad or narrow, depending on how the POA
document is written. Here are a few examples of the kinds of decisions each type of POA can
make.
A healthcare agent can decide:
 What medical care the principal receives, including hospital care, surgery, psychiatric
treatment, home health care, etc. (These choices are dependent on the financial means
of the principal and the approval of their financial agent.)
 Which doctors and care providers the principal uses.
 Where the principal lives. This includes decisions regarding residential long-term care,
such as assisted living, memory care, and nursing homes. Again, the principal must be
able to afford their living arrangements and the financial POA must approve these costs.
 What the principal eats.
 Who bathes the principal.
A financial agent can:
 Access the principal’s financial accounts to pay for health care, housing needs and
other bills.
 File taxes on behalf of the principal.
 Make investment decisions on behalf of the principal.
 Collect the principal’s debts.
 Manage the principal’s property.
 Apply for public benefits for the principal, such as Medicaid, veterans benefits, etc.
What Can’t a POA Do?
A generic POA document that does not contain any limitations typically gives an agent
broad power over medical or financial decisions. However, there are still a few things that an
agent cannot do. One of the fundamental rules governing an agent’s power is that they are
expected to act in their principals’ best interest.
An agent cannot:
 Change a principal’s will.
 Break their fiduciary duty to act in the principal’s best interest.

 Make decisions on behalf of the principal after their death. (Unless the principal has also
named the agent as the executor of their will or the principal dies without a will and the
agent then petitions to become administrator of their estate.)
 Change or transfer POA to someone else. An agent has the right to decline their
appointment at any time. However, unless the principal named a co-agent or alternate
agent in the same POA document or is still competent to appoint someone else to act
on their behalf, an agent cannot choose who takes over their duties.
The Uniform POA Act
Each state has statutes that govern how power of attorney documents are written and
interpreted. This can be very confusing when a principal decides what powers to give to their
agent and an agent tries to determine what actions are legally within their power.
For this reason, twenty-five states have adopted the Uniform Power of Attorney Act
(UPOAA). Created in 2006 by the Uniform Law Commission, this law aims to create universal
default rules for POA contracts across states. It determines which powers are included in the
document by default, and which must be explicitly addressed in order to be bestowed on an
agent.
Among other things, the UPOAA mandates that:
 A POA is valid and durable as soon as it’s signed. According to Fricker, this provision is
important because it gives a principal the flexibility to decide how involved they want
their agent to be while they are still in possession of their faculties. For example, a
financial agent could handle the day-to-day tasks of paying bills and buying food, while
the principal continues to make their own investment and major purchasing decisions.
 Compensation for decision-makers, gift-giving, and any beneficiary changes must be

specifically outlined in the POA document. One common question people have about
POA documents is whether an agent is allowed to receive compensation for making
decisions on behalf of a loved one. Fricker says that any compensation must be clearly
outlined in the document before it is executed for it to be legal. She advises older adults
who are considering appointing someone as their agent to think about including a
provision that allows that person to be paid for their services. ―Offering to pay a chosen
POA is a way to incentivize them to take the extra time and care necessary to literally
manage another human being’s affairs,‖ she says. The time and effort that an agent
must invest to make decisions for another person can easily overshadow an agent’s
own responsibilities and affairs.
 Third parties, such as banks, doctors and other family members, cannot be held
accountable for upholding the decisions of an agent with a POA document that appears
to be legitimate.
 A POA designation ends upon the death of the principal.
A power of attorney generally falls into two categories: general and special.
General Power of Attorney
A General Power of Attorney gives your agent the authority to handle all your affairs
during a period of time when you are unable to do so, such as when you are traveling out of
the country or when your physical and/or mental health are compromised. A General POA can
be included as part of your estate plan to ensure that your financial affairs will be tended to in
the event that you are unable to do so.
A General Power of Attorney is typically very broad, giving the agent extensive powers
and responsibilities. Powers typically include (but are not limited to):
 Handling banking and other transactions

 Filing tax returns
 Buying, selling, or managing real estate and other property
 Entering contracts
 Settling claims
You also have the option to grant your agent additional powers, such as making
transfers to living trusts, maintaining and operating business interests, and disclaiming
interests, among others.
An Example Case for General Power of Attorney;
Dear PAO,
I am an OFW who is scheduled to return to work abroad sometime this year. While
staying here in our country, I filed a criminal case against my neighbour for serious physical
injuries. I was told that the court proceedings in my case may take several months. I am
worried now because I may have to leave the country for my work abroad before I can get to
testify in court. Because of this, I would like to know if my mother can represent me for my
criminal complaint and testify on my behalf since I already told her everything about the
incident. Can she just relay to the court the things that I will testify about during my absence?
Dear Topaz,
In the event that you will be out of the country for your work, you can authorize your
mother to represent you in the criminal complaint you filed by executing a power of attorney so
that your mother may be legally authorized to act on your behalf in your criminal complaint. A
power of attorney is a legal instrument by virtue of which authority is given to a person to act in
the place of another as that person’s attorney-in-fact (Philippine Law Dictionary, 3rd edition, p.
719). By executing a power of attorney, you appoint your mother as your agent and you confer
upon her a legally binding authorization to represent you for some specific act, which in this
case is to represent you as the private complainant in the criminal complaint you filed.
However, while your mother may represent you in your criminal complaint, this does not
mean that she can testify on your behalf for matters that you have a personal knowledge of. It
is important to realize that your mother is not competent to testify on matters involving details
coming from your personal knowledge and experiences in relation to your criminal complaint.
Rule 130 of the Rules of Court provides that:
―Section 36. Testimony generally confined to personal knowledge; hearsay excluded. –

A witness can testify only to those facts which he knows of his personal knowledge; that is,
which are derived from his own perception, except as otherwise provided in these rules.‖
Considering the above cited law, while your mother may testify on matters involving her
personal knowledge connected to your case, she cannot testify on matters that were merely
relayed to her by you or any other person. She may not take the witness stand to testify on
your behalf on matters over which only you have personal knowledge. It is important that the
testimonies given in court are first-hand knowledge of the person testifying and not just
information related by another person. Such kind of testimony is generally inadmissible into
evidence and is categorized as mere hearsay which will not be allowed in court.
Therefore, while you may authorize your mother to represent you in your case and have
her sign and/or receive documents for you and even settle and/or compromise the civil aspect
of the case on your behalf, she still cannot testify in your stead on matters pertaining to your
personal knowledge and experiences.
Special Power of Attorney

Appointing a special power of attorney means legally authorizing another person, called
an agent or an attorney in fact, the right to act on behalf of another person, known as the
principal, under specific, clearly laid-out circumstances.
Special power of attorney is also called a limited power of attorney. In the financial
world, limited power of attorney, or LPOA, gives a portfolio manager the authorization to
perform certain functions on behalf of a client in that client’s account.
[Important: By writing a letter authorizing a special power of attorney, an individual is

giving another person the legal right to make decisions on their behalf.]
An Example Case for Special Power of Attorney;
Dear PAO,
Good day! A buyer expressed his interest in buying my land. I am amenable to his
proposal, but I cannot personally conduct the sale because I am staying abroad. My cousin
told me to just send an authorization letter to him so he can arrange the sale. May I know what
I should send to my cousin so that he can act on my behalf?
Dear JB,
In order to authorize another person to act on behalf of a principal, an agency contract
must first be created. A contract of agency is one where a person binds himself to render some
service or to do something in representation or on behalf of another, with the consent or
authority of the latter (Art. 1868, Civil Code). An agency may be expressed, or implied from the
acts of the principal, from his silence or lack of action, or his failure to repudiate the agency. It
may also be oral, unless the law requires a specific form (Art. 1869, Ibid.). Thus, as a rule, the
agency may come in any form as long as the delegation of authority can be established. A
specific form should only be observed if required by law.
Corollary to this, Article 1874, Id., expressly provides that ―when a sale of a piece of
land or any interest therein is through an agent, the authority of the latter shall be in writing;
otherwise, the sale shall be void‖. In addition, Article 1878 (5) of the same code requires a
special power of attorney in order to ―enter into any contract by which the ownership of an
immovable is transmitted or acquired either gratuitously or for a valuable consideration‖.
Hence, when it comes to the sale of land, it is necessary that the authorization be in writing.
Further, a special power must be conferred, which means that the authority to sell must be set
forth. As tersely explained by the Supreme Court in the case of Dizon vs. Court of Appeals:
―The authority of an agent to execute a contract for the sale of real estate must be
conferred in writing and must give him specific authority, either to conduct the general
business of the principal or to execute a binding contract containing terms and conditions
which are in the contract he did execute. xxx The express mandate required by law to enable
an appointee of an agency [couched] in general terms to sell must be one that expressly
mentions a sale or that includes a sale as a necessary ingredient of the act mentioned. For the
principal to confer the right upon an agent to sell real estate, a power of attorney must so
express the powers of the agent in clear and unmistakable language‖ (G.R. No. 122544,
January 28, 2003).
Based on the foregoing, you need to execute a special power of attorney to sell the
property in favor of your cousin to properly authorize him to act as your agent in the sale. Such
special power must clearly confer the power to sell the property you wish to dispose to avoid
casting cloud or doubt on the authority of your cousin to act on your behalf. Otherwise, as the
Supreme Court mentioned in the Dizon case, ―when there is any reasonable doubt that the
language so used conveys such power, no such construction shall be given the document.‖
In conclusion, not all powers of attorney are created equal. Many are created as
general, durable powers of attorney that are intended to last the lifetime of the principal, or
person granting the power of attorney. Others are made out of necessity when the principal
can’t be in two places at the same time: In this case his attorney-in-fact, or agent appointed by
the power of attorney, must act for him. These powers of attorney are often intended to be
temporary in nature. Other factors or actions also determine how long the granted powers last.
A general power of attorney often has broad and sweeping powers that allow an
attorney-in-fact to perform practically every action and sign most any document the principal
could have signed if personally present. This type of power of attorney usually has "durable"
language, stating that even if the principal later becomes mentally incompetent, its powers
remain in full force and effect. Unless a general power of attorney has a specific expiration
date, or the principal revokes it in writing, or an event occurs that terminates it under the law, it
should remain in effect until the death of the principal.
In a specific or limited power of attorney is limited by its terms. It may be limited to a

specific transaction, such as signing a deed or mortgage and other documents in a real estate
transaction. It may be specific to signing medical or release-of-liability forms for recreational
activities when a friend’s child is on vacation with you. A specific power of attorney terminates
when the specific action for which it is intended has been performed. A power of attorney may
also be for a limited time, such as when a person is out of the country. A limited power of
attorney of this type may give an expiration date, after which time its powers are no longer
valid.
With any type of power of attorney, the powers granted terminate upon revocation.
There may, however, be language in the power of attorney or specific state law that holds
persons or institutions harmless, or not liable, when they act in good faith on a power of
attorney if they received no notice of its revocation. A revocation of a power of attorney should
be in writing and signed by the principal and provided to the principal’s financial institutions or
other parties with whom he transacts business.
If the attorney-in-fact withdraws, dies or becomes unable to otherwise act under the
powers given in the document and there is no successor attorney-in-fact named, the power of
attorney will terminate. To prevent an unintended termination, a power of attorney should
name a successor attorney-in-fact to act in such event.
Therefore the difference between General Power Attorney and Special Power Attorney
is a general power of attorney grants the agent the legal right to make all personal and
business decisions on behalf of the principal. Unlike the broader general power of attorney, a
special power of attorney gives the agent the authority to act on the principal's behalf, but only
under certain, specified circumstances. Authority could be granted to allow the agent to buy or
sell a home, withdraw money from a bank account, cash checks, or run a business.
Because this type of power of attorney is limited to what has been laid out in the signed
document, it is particularly important that the principal is very clear about the powers that they
want the agent to have. An individual whose physical or mental health is compromised may
choose to assign a special power of attorney, giving the agent limited power to buy, sell or
manage real estate on their behalf. Additionally, the principal may create more than one
special power of attorney, naming a different individual in each one.
The special power of attorney is often used when one cannot handle certain affairs due
to other commitments or for health-related reasons.
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SPA vs. GPA

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SPA vs. GPA

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“Special Power of Attorney vs.

General Power of Attorney”

How Power of Attorney Works

 Make, amend or revoke a will

Things You Can and Can't Do With Power of Attorney

What Can a POA Do?

 Which doctors and care providers the principal uses.

 What the principal eats.

 Who bathes the principal.

A financial agent can:

 File taxes on behalf of the principal.

 Make investment decisions on behalf of the principal.

 Collect the principal’s debts.

 Manage the principal’s property.

What Can’t a POA Do?

 Change a principal’s will.

 Break their fiduciary duty to act in the principal’s best interest.

The Uniform POA Act

Among other things, the UPOAA mandates that:

 Compensation for decision-makers, gift-giving, and any beneficiary changes must be

 A POA designation ends upon the death of the principal.

General Power of Attorney

 Handling banking and other transactions

An Example Case for General Power of Attorney;

―Section 36. Testimony generally confined to personal knowledge; hearsay excluded. –

Special Power of Attorney

[Important: By writing a letter authorizing a special power of attorney, an individual is

An Example Case for Special Power of Attorney;

In a specific or limited power of attorney is limited by its terms. It may be limited to a

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Figure 2f from: Reshchikov A (2013) New species of Lathrolestes Förster (Hymenoptera:

Figure 2f from: Deady R, Heller K, Work T, Venier L (2014) Peyerimhoffia jaschhoforum

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Figure 2f from: Irimia R, Gottschling M (2016) Taxonomic revision of Rochefortia Sw.

Figure 2f from: Irimia R, Gottschling M (2016) Taxonomic revision of Rochefortia Sw.

Durable Power of Attorney

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Information for authors

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Columbia Law Review - 1926

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Application for IEEE Power Group

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Figure 2f from: Heller K, Rulik B (2016) Ctenosciara alexanderkoenigi sp. n. (Diptera:

Figure 2f from: Reshchikov A (2013) New species of Lathrolestes Förster (Hymenoptera:

Figure 2f from: Deady R, Heller K, Work T, Venier L (2014) Peyerimhoffia jaschhoforum

Nadir Yurtoğlu - History Studies International Journal of History – 2018

Figure 2—source data 2. Related to Figure 2F.