A New York Limited Power of Attorney Form is used when the Principal wishes to restrict the powers granted to the Attorney-in-Fact. As the name implies, this agreement gives the Attorney-in-Fact a single, limited power, usually so they can perform a specific action on behalf of the Principal, rather than blanket authority to manage the Principal’s finances.
In general this kind of agreement is considered safer and easier to draft than a General Power of Attorney form. As it grants the Attorney-in-Fact very limited power, it has a much lower potential for abuse and comes with less required responsibility. Therefore it is most popular amongst Principal’s who wish to delegate specific tasks, rather than hand over the authority to run their finances.