A New Jersey general power of attorney (GPOA) is a legal document establishing an arrangement where a principal allows an agent to handle some of their financial affairs. This non-durable form can provide an agent with a wide scope of financial responsibilities, but the principal can also write it to narrow the tasks the agent is allowed to complete.
Unlike a durable power of attorney, this form expires when the principal becomes incapacitated. This characteristic prevents the agent from abusing their authority or acting in a way the principal doesn’t approve.
Authority (NJ Stat. § 46:2B-11) – State law specifies that the principal can include a statement allowing the agent to “conduct banking transactions as set forth in section 2 of P.L. 1991, c.95 (C.46:2B-11).” With this statement in place, an agent can deliver checks, receive bank statements, and borrow money by bank overdraft.
Signing Requirements (NJ Stat. § 46:2B-8.9) – A notary public must witness the principal’s signature.
Presumption of Durability (NJ Stat. § 46:2B-8.2(b)) – If the principal doesn’t include an explicit statement about the designated powers’ durability, state law assumes the authority will terminate when the principal becomes mentally incompetent.