A Connecticut durable statutory power of attorney form is a document that grants someone (the “agent”) the legal authority to act and make decisions for another person (the “principal”) in the state. The DPOA stays in effect even if the principal becomes incapacitated and legally can’t make their own decisions.
This form is sometimes called a general durable power of attorney and a durable power of attorney for finances and is used for financial and business matters. To grant authority over medical decisions, you need a medical power of attorney.
Laws
All power of attorney forms are durable by default.
- Statute: Chapter 15c (Uniform Power of Attorney Act).
- Presumed Durable: Yes (§ 1-350c).
- Signing Requirements: Principal’s signature, two witnesses, and date required.
- Notarization: Signature presumed genuine if acknowledged before a notary public or other official (§ 1-350d).
- Statutory Form: Yes (§ 1-352).
Definitions
Durable – In a power of attorney, “durable” means that it is not terminated by the principal’s incapacity (§ 1-350a(2)).
Power of Attorney – A “power of attorney” is a legal document (or recording) that gives the agent the authority to act on behalf of the principal, even if the formal term power of attorney isn’t mentioned (§ 1-350a(7)).
Specific Powers and Limitations
Restrictions on Gifts and Transfers
Per § 1-351p, there are certain limitations to the agent’s authority with respect to gifts.
Types of Gifts:
- Gifts “for the benefit of” a person: Includes gifts to trusts, accounts under the Uniform Transfers to Minors Act, and tuition savings accounts or prepaid tuition plans (as defined under 26 U.S.C. 529).
- Outright gifts to individuals: Up to the annual dollar limits of the federal gift tax exclusion.
- Consent to splitting gifts made by the principal’s spouse: The gift amount per donee should not surpass the combined annual gift tax exclusions for both spouses.
Considerations:
- The principal’s known objectives (if known by the agent).
- The principal’s best interests (if objectives are unknown).
- The value and type of the principal’s property.
- The principal’s future needs and obligations.
- Tax minimization (income, estate, inheritance, etc.).
- Maintaining eligibility for benefits/programs.
- Principal’s history of gift-giving.
Agent’s Authority Limitations
The agent must act in good faith. They can only take actions explicitly allowed in the document and must avoid conflicts of interest. Additionally, they are expected to act with reasonable care and diligence, keeping records of financial transactions (§ 1-350m).
There might be limitations on the types of transactions the agent can perform (selling property, entering into contracts, etc.). The agent generally cannot use their authority for personal gain or benefit from the principal’s property or affairs.
Revocation and Termination
Per § 1-350i, a DPOA terminates under specific circumstances:
- When the principal dies.
- The principal revokes it (which can occur at any time).
- Once the specific purpose it was created for is fulfilled.
- Following a termination clause.
- Mandated by court.
- If the agent dies, becomes incapacitated, resigns, or the principal revokes their authority specifically (and no successor agent is designated).
When the agent is the principal’s spouse, their authority terminates if the marriage to the principal dissolves or they legally separate (unless the DPOA states otherwise).
Safekeeping and Registration
Connecticut does not have a statewide registry for DPOAs. That is why it’s crucial to keep the original document in a secure location accessible to both you (the principal) and your agent. You can also provide a copy to your attorney or financial advisor for safekeeping.
Some financial institutions might have their own internal procedures for registering DPOAs for their specific accounts. Check with your bank, brokerage firm, or other financial entity to see their requirements.
Additional Resources
- State Bar Association Website: General information on DPOAs.
- Connecticut Legal Services: Offers legal aid to low-income residents in the state.
