A power of attorney assigns an “agent” or “attorney-in-fact” to act in the place of another (known as the “principal”) for certain personal affairs. These affairs could relate to the management of one’s estate, healthcare, or parental authority depending on the type of POA executed. Each version of this instrument will generally require information pertaining to both parties, a description of the powers that are to be delivered, and the signature of the principal which typically necessitates the acknowledgment of witnesses and/or a notary public. Following the document’s completion, the appointed individual will possess the legal authority to carry out any of the assigned tasks described within the original form.
Advance Directive (Medical POA & Living Will) – This is a document that combines a medical power of attorney with a living will, creating an instrument where the principal can stipulate what is to occur should they become incapacitated and who will have the authority to make decisions on their behalf.
Durable (Financial) Power of Attorney – Delegates financial decision-making powers to someone else. The term “durable” means the form remains in effect even if the principal is no longer able to make decisions for themselves.
General (Financial) Power of Attorney – Equips an agent with financial powers so that they may perform transactions in the primary individual’s name and does not remain effective if the principal is considered incapacitated.
IRS Power of Attorney (Form 2848) – Distributed by the Internal Revenue Service, this document is used to grant an agent (typically an accountant or attorney) the ability to conduct tax filings and receive paperwork on the taxpayer’s behalf.
Limited (Special) Power of Attorney – Instead of issuing broad sweeping powers, individuals can utilize this POA to delegate a more specific task by outlining the exact authority that they wish to convey.
Living Will – Helps users to record their desired procedure regarding situations involving them being on life support.
Medical Power of Attorney – Strictly allows a person to choose someone else to act as their health care agent in case the patient is no longer able to make decisions for themselves.
Minor Child Power of Attorney – Grants someone else the concurrent authority to care for the principal’s child during their absence, allowing the agent to sign off on any of the minor’s medical, dental, or educational needs.
Motor Vehicle Power of Attorney – Allows the owner of an automobile to select someone else to perform transactions related to the titling, registering, selling, or purchasing of their vehicle.
Real Estate Power of Attorney – A person who is unable to be present during the time of a transaction related to real estate may implement this document to allow someone else to handle the management, financing, purchasing, or selling of a specified property.
Revocation of Power of Attorney – Cancels an existing power of attorney immediately or on a scheduled date. (Notice of the revocation must be delivered to the agent in order to ensure that they are aware of the original document’s termination.)
State Tax Filing Power of Attorney – Each state within the U.S. offers its own POA for designating tax matters to a third (3rd) party. Users can choose the state that corresponds to them in order to acquire the form that is applicable to their jurisdiction.
A power of attorney gives another person the authority to conduct matters on your behalf and can serve multiple different purposes based on the needs of the executor. Once a POA has been properly filled out and endorsed, the attorney-in-fact will have the capacity to acquire personal documents, sign paperwork, and perform any other operation as it pertains to the authority granted.
In the past, most individuals who wished to provide power of attorney to another person would hire the services of a lawyer to draw up a contract outlining the terms of the arrangement. Luckily in this day and age, trusted websites such as ours offer the public resources that allow them to establish their own POA relationship, making it a more simple and affordable endeavor for those who do not wish to pay high attorney fees. Follow the steps below to better understand the process.
Which power are you in need of giving to another individual? That is the question you, the principal, need to ask yourself. The three (3) main types of power that one can delegate to an agent include:
Now that you have determined the type of power that you wish to grant, it is time to think about which format best suits your needs. Read the bullet points below to explore the available options:
Review the types of POA documents above to see which one meets your criteria. Although some may not mention the aforementioned formats in the title, most of them allow you to select your desired term within the content of the form.
When choosing an agent to act on your behalf, it is important that you pick someone who is trustworthy and reliable, especially if the POA being executed is durable. The type of person you nominate as your attorney-in-fact can vary depending on the circumstances of the arrangement, here are some examples of potential candidates to fill the position:
It’s time to put the details of the arrangement to paper now that you have established your requirements. Be sure that the document selected coincides with the state in which your agent will be carrying out tasks in your name (state-specific forms available above). Although each POA form will differ in terms of its layout, they will all generally require the same formula, which includes the recording of information concerning the:
Once the document has been filled out and customized to the liking of the principal, they will be required to sign it. Before this action is performed, it is important to research your local laws to ensure that the endorsement is valid. Most states will require that you sign in the presence of witnesses and/or a notary public to further certify the legitimacy of the instrument. This can be achieved:
Power of attorney is the act of giving another person the legal authority to perform certain assigned tasks in your name.
This can vary depending on several different factors and the overall content of the existing POA. First off, the principal (the individual who originally granted the authority) always reserves the right to revoke the terms of an active POA at any time. The only time this may not be possible is if the document is durable and the grantor has become incapacitated. If this is the case, and another party who is connected to the principal feels that the agent should no longer possess the right to act in their place, they could potentially petition the court to suspend the authority and appoint them as an adult guardian or conservator. With that said, it is a very difficult process and is only worthwhile if there is sufficient evidence that the attorney-in-fact violated the terms of the contract.
When an agent signs a document on the principal’s behalf, they must execute it in the following format:
Yes. If the principal of a POA passes away, the instrument will automatically become void and the agent will no longer have the legal right to act on their behalf.
In order to acquire power of attorney, you will need to receive written permission from the individual you will be acting for. This comes in the form of a legal document that contains all the necessary clauses required by the state in which the authority is being conveyed. The party granting the powers must indicate who is involved, what privileges the agent will have access to, and what the limitations will be surrounding the arrangement. Once the instrument is signed by the principal and acknowledged according to state law, the agent will have the ability to represent the grantor concerning any of the matters listed within the content of the document.
Whenever one decides that they want to revoke power of attorney from their agent, it is imperative that they do so in writing. This can be achieved by:
Most states require a power of attorney to be notarized and/or witnessed by attesting individuals to legally take effect. Check with your local state requirements to see if this is a necessary measure. Regardless of whether or not it is mandated by local legislation, it is never a bad idea to have your document certified by a public official in order to further confirm its authenticity.
