An Arkansas general power of attorney (GPOA) allows an individual, referred to as the “agent” or “attorney-in-fact,” to manage various financial affairs on behalf of the principal. This non-durable document becomes effective upon signing and is generally utilized for specific financial tasks.
However, this designation becomes invalid if the principal becomes incapacitated. Conversely, a durable power of attorney remains effective even if the principal becomes incapacitated, allowing the agent to continue managing the principal’s financial matters as specified in the document.
Authority (Ark. Code § 28-68-201) – An agent can act on behalf of the principal provided the authority is explicitly granted and not restricted by any other agreement. If the power of attorney grants broad authority similar to what the principal could do, the agent possesses general authority. Any actions conducted by the agent are legally binding on the principal and their successors, having the same effect as if the principal performed the actions themselves.
Signing Requirements (Ark. Code § 28-68-105) – The principal’s signature must be acknowledged by a notary public.
Presumption of Durability (Ark. Code § 28-68-104) – Yes, in Arkansas, a power of attorney is considered durable by default unless it expressly states its termination by the principal’s incapacity.