DEFINITION OF ‘SPECIAL POWER OF ATTORNEY’
A special power of attorney, also called a limited power of attorney, grants an agent (also called an attorney-in-fact) the authority to act on behalf of the principal (the person granting this authority) under certain, specified circumstances.
INVESTOPEDIA EXPLAINS ‘SPECIAL POWER OF ATTORNEY’
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, for example, buy or sell a home, withdraw money from a bank account, cash checks or run a business.
The principal may create more than one special power of attorney, naming a different individual in each one.