Power of Attorney (POA) Forms

Power of Attorney forms are legal documents that allow someone you trust to manage your medical or financial affairs if you cannot do so. The forms specify what actions your agent can take on your behalf and can only be legally binding if they follow your state’s requirements.

POA Forms – By State

POA Forms – By Type

Terminating a Power of Attorney

 

Table of Contents

• POA Forms - By State
• POA Forms - By Type
• Terminating a Power of Attorney
• What Is Power of Attorney?
• When to Use a Power of Attorney
• How to Get Power of Attorney
  • Step 1 - Assess Your Needs as Principal
  • Step 2 - Choose an Agent (or Attorney-in-Fact)
  • Step 3 - Draft the Document
  • Step 4 - Review State Laws
  • Step 5 – Sign, Notarize, and Distribute Copies of the Document
• How to Sign as Power of Attorney
• State Signing Requirements
• How to Choose an Agent
• How to Write a Power of Attorney Form
• How to Remove a Power of Attorney
• Frequently Asked Questions

What Is Power of Attorney?

A Power of Attorney (POA) is a legal document that gives someone else the authority to manage a person’s affairs. Someone serving as a Power of Attorney can act for someone else in specific financial, health-related, or personal matters.

With a POA, an individual (the “principal“) can choose another person (the “agent” or “attorney-in-fact“) to make confident decisions on their behalf. When completing the paperwork, the Principal will provide the essential details about the agent and what actions they may take on behalf of the principal.

If you become incapacitated without designating an agent, a loved one or family member may need legal guardianship from a court to help with your affairs. [1]

Example:
For instance, an elderly woman named Margaret wants to ensure her financial affairs are managed if she becomes incapacitated. She appoints her daughter, Emily, as her attorney-in-fact through a POA, giving Emily the authority to manage bank accounts, pay bills, and make investment decisions on her behalf.

Statutory Definition

Section 102(7) (page 7) defines as:

Uniform Power of Attorney Act

Commonly known as the UPOAA was enacted in 2006. The UPOAA was created by the Uniform Law Commission (ULC) in response to the need for a uniform and standardized set of laws governing the creation and scope of a power of attorney.

States That Have Enacted UPOAA

When to Use a Power of Attorney

Real-World Examples of When to Use

1. Durable POA for Business: A business owner can authorize a trusted employee to sign contracts or conduct financial transactions on behalf of the company when the employee is out of town or unavailable.
2. Durable POA for Finances and Healthcare: An elderly person can delegate their finances or medical decisions to a family member or friend if they cannot do so themselves.
3. Military POA: A military service member can appoint a representative to a spouse or trusted family member to handle their affairs while deployed overseas.
4. Limited POA for Child Care: A parent can authorize medical care for a child to a babysitter or nanny in an emergency while the child is in their care.
5. Limited POA for Real Estate: A buyer can delegate closing documents to a trusted personto execute closing documents if they cannot attend the closing.

How to Get Power of Attorney

But if you need to appoint someone to make medical decisions on your behalf, if you’re unable to do so, you’ll want to use a medical one.

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➔ Keep Learning: Let’s explore what exactly your appointed agent can do and what are the limitations!

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Be clear and specific about the powers you grant and understand how you can revoke the power of attorney if needed. If it’s not durable, specify when it expires.

Also, designate alternate agents in case your first choice cannot serve.

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Highly Recommended: Use a fillable POA template specific to the state, which typically includes sections for identifying information, powers granted, and signatures of the grantor, agent, and witnesses.

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Step 4 – Review State Laws

It is imperative to review your state’s specific laws to ensure the document’s validity. Each state may have different requirements concerning notarization, witnessing, and the language used in the document.

This step ensures that the power of attorney is legally binding and will be honored by courts and institutions, safeguarding the principal’s interests and intentions as outlined in the document.

Step 5 – Sign, Notarize, and Distribute Copies of the Document

Once the document is completed, it is recommended, and sometimes mandatory, to have the form(s) signed in the presence of Witness(es), a notary public, or both. Check the signing laws in your state to learn what is required for your document to be fully executed and legally valid.

The witnessing process provides a level of assurance against fraud, affirming that you are indeed signing the document. Notarization further legitimizes it, as a notary public verifies your identity and willingness to sign.

After signing and notarizing the document, distribute copies to your agent, family members, and others who may need to know about the arrangement. All parties should keep copies of the completed form, and the original should be stored somewhere safe.

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➔ Keep Learning: How to Sign as POA

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How to Sign as Power of Attorney

Once a Power of Attorney is effective, the agent can sign it and make decisions on the principal’s behalf.

To have an agent use a general Financial POA, the principal must contact the third party (such as a bank) in advance and show the original signed form (or a certified copy) and the agent’s and principal’s IDs.

Once the agent has been confirmed or added to the account, they can sign for transactions as follows:

[Principal’s name]

How to Choose an Agent

Choosing the right agent with a Power of Attorney is the best way to avoid risk. Remember that you can select multiple agents for different tasks and assign responsibilities based on the agents’ strengths and character.

Many people choose a spouse as their agent. This can create problems for durable and medical powers of attorney if the spouse is similar to the principal, as they may also face age-related health challenges.

Naming adult children is a standard option because they will be younger, but this can create conflict when one sibling is given power of attorney and another feels they’ve been mistreated. You should never name one of your children as your agent because of fairness if you lack trust in their ability to handle your affairs.

There are no specific qualifications, but choosing someone trustworthy and capable of serving as your agent is essential. Take these points into account when making your choice:

• Needs: The tasks you want to be entrusted to your agent must also be carefully considered. Would you require someone to take charge of your finances, be responsible for your healthcare decisions, or handle both?
• Reliability: This person will act with the same legal authority you would have to manage your financial and medical data, so it’s paramount that you select someone you trust.
• Availability: Make sure they’ll be able to help you when you need it most, so you should avoid those who are often out of town or have other obligations that might prevent them from stepping in for you.

How to Write a Power of Attorney Form

Details are critical in a power of attorney form. Your appointed agent will have the power to make serious financial decisions on your behalf. Clear intentions, limitations, and terms for termination can protect you from legal issues down the line.

This is generally the structure of a power of attorney; however, the structure and necessary provisions vary from state to state. 

Step 1 – Designation of Agent

Choose who you want to name as the power of attorney’s agent or attorney-in-fact. This person will handle sensitive financial matters on your behalf, so choose carefully. Select someone who understands the tasks they must manage and can be trusted to act in your best interests. Enter the name and address of your agent and co-agent, if applicable.

Consider adding a successor agent who can handle your financial matters if your primary agent is unable to do so. You may also add a secondary successor.

Appropriate agents may include:

• A spouse
• A close relative
• A close friend
• A professional with an honest reputation

When determining the right agent, ask yourself whether you trust the person to handle your financial matters with discretion. You should choose someone who will understand your perspective and reliably follow your wishes.

Step 2 – Grant Of General Authority

On the document, initial next to the authority or powers you want to grant your agent. This may include granting authority over any of the following:

• Real property
• Tangible personal property
• Stocks and bonds
• Commodities and options
• Accounts with banks or other financial institutions
• Operation of entity or business
• Insurance and annuities
• Estates, trusts, and other beneficiary interests
• Claims and litigation
• Personal and family maintenance
• Benefits from governmental programs or civil or military service
• Retirement Plans
• Taxes

If you wish to allow your attorney-in-fact to handle all the above matters, simply initial the last line in the section labeled “(N) All Preceding Subjects.” By initialing these general authorities, the principal grants permission for the agent to act on their behalf in related matters.

Step 3 – Grant of Specific Authority (Optional)

While general authority may permit an agent to manage many aspects of your financial life, you must grant special authority for certain acts. These powers can reduce your property or alter its distribution after your death. For the principal to ensure they are protected in such cases, they must specifically grant the authority to:

• Create, amend, revoke, or terminate an inter vivos trust
• Make a gift
• Create or change rights of survivorship
• Create or change a beneficiary designation
• Authorize another to exercise power under the POA
• Waive the principal’s right to be a beneficiary of a joint and survivor annuity, including under a retirement plan
• Exercise fiduciary powers the principal has the authority to delegate

Before you initial one of these items, consider discussing the matter with an estate attorney or financial advisor. They can help you understand the potential risks associated with assigning these powers to an agent.

Step 4 – Limitation on Agent’s Authority

As an added level of protection, a POA form may include a clause limiting the agent’s ability to use the granted authority to benefit themselves or others associated with them. This prevents an unrelated agent from using their access and authority over your financial matters to benefit their family members or others to whom they owe an obligation of support.

Exceptions to this limitation include when the agent is the principal’s spouse, ancestor, or descendant. If your agent is permitted to use property to benefit themselves or others, note the details in the special instructions. Include as much detail as possible concerning the extent and limitations of the agent’s power in this situation.

Step 5 – Special Instructions (Optional) 

Special instructions are optional. This is where you indicate any exceptions, limitations, or clarifications to the powers granted above. A power of attorney form is a legally binding agreement that can significantly affect financial well-being. It is in your best interest to include as much detail as possible.

Examples of special instructions include:

• How you want certain matters handled
• Financial limitations on gifts, payments, and other financial transactions
• Instructions on how to operate a business
• Situations that require communication with the principal before acting
• Additional limitations on power and authority
• Time limits or conditions that automatically terminate the agreement
• Conditions that trigger a transfer of the POA to a successor agent or secondary successor agent
• Adding additional co-agents or successor co-agents.
• Instructions for agent compensation.

Step 6 – Effective Date

Select the date you want your agent to receive power of attorney and begin handling your financial affairs. Choose from the following options:

• Effective immediately
• Effective upon the principal’s incapacity or disability
• Effective upon a specific event or contingency

If you choose a specific event to trigger the power of attorney, such as a military deployment, clearly outline the conditions under which the agreement becomes effective.

Under a conditional or springing POA, your agent must prove the event has occurred so they can take over financial responsibilities. They could have trouble exercising their authority without sufficient detail or documentation to confirm the contingency. For instance, if the power of attorney activates because the principal leaves on deployment, the agent may need copies of the deployment orders.

Springing POAs are not allowed in all states. Check your specific state requirements regarding the types of POAs that are permitted.

Proving Incapacity

If your POA becomes effective upon the principal’s incapacity, the agent will need evidence to establish that the principal is incapable of making their own decisions. This evidence typically comes as a doctor’s declaration and may require a court order.

Types of incapacity that could trigger a conditional POA include:

• Alzheimer’s disease or dementia
• Traumatic brain injury
• Loss of vision or hearing
• Severe cognitive impairment or learning disability
• Severe psychological or behavioral disorders

This is not a comprehensive list; every state has different definitions for incapacity. Check your local laws before establishing a POA to understand how the scope of incapacity can affect your agreement.

Step 7 – Termination

When filling out the termination section, you will need to choose between two options:

• Durable Power of Attorney: This option means that the power of attorney will not be affected by your subsequent disability or incapacity, or lapse of time.
• Regular Power of Attorney: This option means that the power of attorney will terminate if you become disabled or incapacitated.

Step 8 – Nomination of Guardian (Recommended)

When you complete a power of attorney form as part of an estate plan, you can nominate a guardian for your person and your estate. One person can serve as a guardian for both, or you may recommend separate guardians for each purpose. The appropriate court, usually a probate court, must approve the guardian should you become incapable of caring for yourself. If appointed, the guardian(s) will have the authority to make all decisions about your person and/or property.

Difference Between Guardian and Power of Attorney

While a power of attorney grants an agent specific powers, those powers are typically limited to the financial and legal authority granted in the POA. The agent may act on your wishes, but you are still the primary decision-maker.

A legally appointed guardian, on the other hand, makes decisions for you, typically because you cannot handle these matters on your own. Your guardian and POA agent may work together to manage your affairs, depending on the circumstances.

If your POA is non-durable, the agent’s power will end when you become incapacitated, and an appointed guardian can take up all responsibilities. Due to the serious nature of guardianship, it is wise to consult with a probate attorney or estate planner when determining who to nominate as a guardian.

Step 9 – Reliance on This Power of Attorney

Include a sentence or clause declaring the validity of the POA form unless the person relying upon it knows that it is terminated or invalid. This section ensures that the POA will be used in good faith by the agent and others who may require the form to conduct business on behalf of the principal.

This clause formalizes the document’s intent and grants the attorney-in-fact permission to rely on the power of attorney if the agreement has not been terminated, suspended, or revoked.

Step 10 – Signature and Acknowledgement

Once the principal signs and dates the POA form, it becomes a legally binding document. Most states require a notary or witnesses to be present for this step, so review your state laws for notarization requirements before signing.

You must sign the document in the presence of the notary or witnesses consistent with your local laws. If you fail to sign before the appropriate witnesses, the document is deemed invalid, and you must complete a new POA form.

Representative Signature

If you cannot physically sign the power of attorney form as the principal on your own, you may designate a legal representative to do so on your behalf.

If your representative signs, they must enter the following information under the signature and acknowledgment section:

• Representative’s name
• Representative’s signature
• Name of the principal on whose behalf they are signing
• Principal’s address
• Principal’s telephone number

Step 11 – Notary Acknowledgement

Your POA form may include a separate section for the notary public’s information. The notary must typically enter the following:

• State or commonwealth
• County
• Date of acknowledgment
• Principal’s name
• Signature
• Commission expiration date
• Notary seal, if necessary

Depending on your state’s requirements, you may include a separate notary or witness acknowledgment form. The notary or witnesses must verify your identity during the signing. They may ask for identification in the form of a state ID, driver’s license, or passport.

Your POA form must be signed and notarized in accordance with the laws of the state where your representative will conduct business. States may allow you to transfer power of attorney if the POA meets their signing requirements, but not always.

In addition, some financial institutions, businesses, and other organizations will not accept out-of-state POAs.

Frequently Asked Questions