Power of Attorney (POA) Forms

A power of attorney (POA) form a legal document that allows an individual (the principal) to appoint someone they trust (the agent) to manage their medical or financial affairs if they are unable to do so themselves. This arrangement gives the agent the authority to make decisions and act on the principal’s behalf. The scope of this authority can be broad or limited, depending on the specific provisions outlined in the form. The POA must comply with the state’s legal requirements to be considered valid and enforceable.

POA Forms – By State

POA Forms – By Type

Table of Contents

• POA Forms - By State
• POA Forms - By Type
• What Is Power of Attorney?
• Who Needs a Power of Attorney?
• When Can an Agent Make Decisions For Me?
• What Powers Can I Grant to My Agent?
• 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 the Document
  • Step 6 - Distribute Copies and Store
• State Signing Requirements
• Sample Power of Attorney
• How to Write a Power of Attorney Form
• Frequently Asked Questions

What Is Power of Attorney?

A power of attorney is a crucial legal instrument that authorizes a designated individual to make decisions and handle matters on someone else’s behalf. This designated person, known as the “agent” or “attorney-in-fact,” is empowered by the principal (the person granting the POA) to manage specific aspects of their life, which may include financial transactions, healthcare decisions, or other personal affairs [1] .

Creating a POA allows the principal to ensure that their affairs will be managed according to their wishes, especially if they become unable to make decisions themselves. Without a POA, family members may have to undergo a complex and potentially costly legal process to obtain the authority to make these decisions.

Statutory Definition

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

Who Needs a Power of Attorney?

Anyone who wants to ensure their affairs are handled according to their wishes, especially if they become unable to make decisions themselves, should consider getting a power of attorney. Here are several situations where having a one is particularly important:

• You want to be prepared for health emergencies, accidents, or incapacitation: A POA can designate someone to make healthcare decisions on your behalf if you’re unable to do so.
• You have a job in dangerous fields: Individuals working in high-risk professions, such as construction, law enforcement, or firefighting, may find a POA essential for preparing for any unforeseen incidents.
• You’re heading overseas frequently: For those who travel abroad regularly, a POA can manage your financial and legal matters back home, ensuring smooth operations in your absence.
• You’re in the military: Military personnel, especially those deployed overseas, can benefit from a POA to manage their personal affairs while they’re away.
• You want assistance in making your business, real estate, or life decisions: A POA can grant an agent the authority to handle business transactions, manage real estate, or make other significant life decisions.
• You’re planning for long-term care: As you age, a POA can help manage your affairs, including healthcare and financial decisions, aligning with your long-term care plans.
• You have specific wishes regarding end-of-life care: A healthcare POA can ensure that your preferences for end-of-life care are respected and followed.
• You’re managing a chronic illness: A POA can be crucial for individuals with chronic illnesses, allowing appointed agents to make healthcare decisions if the illness progresses to a point where the individual can’t make decisions themselves.

When Can an Agent Make Decisions For Me?

The ability of your agent to make decisions on your behalf depends on the type of POA you establish:

• Non-Durable (NDPOA): Your agent can make decisions for you with an NDPOA for temporary situations, like when you’re traveling or undergoing a short-term medical procedure. It ends if you become incapacitated or when its specific purpose is fulfilled.
• Durable (DPOA): Your agent can make decisions for you under a DPOA even if you become permanently incapacitated. This form is effective immediately upon signing or upon your incapacitation, allowing your agent to manage your affairs indefinitely under such circumstances.

What Powers Can I Grant to My Agent?

You can delegate a range of responsibilities to your agent through a power of attorney, tailoring their powers to fit your specific needs. This includes:

• Real Estate: Manage, buy, or sell properties on your behalf. Restrictions could apply to specific assets.
• Business: Oversee business operations, make financial decisions, and represent you in legal matters. Limits may include investment caps or hiring constraints.
• Finance: Handle financial transactions, access bank accounts, and manage investments. You might limit spending or restrict access to certain accounts.
• Insurance: Manage insurance policies. Restrictions can specify which actions are permitted, like cashing checks but not altering policies.
• Legal: Represent you in legal matters. This power can be confined to existing legal issues only.
• Family Care: Cover education, maintenance, and medical expenses for you or your dependents. Restrictions can focus their role to specific family members.
• Living Trust: Manage assets in a living trust, with potential limitations on which trusts they can handle.
• Hiring Professionals: Authorize the hiring of necessary professionals for you or your family’s care.

How to Get Power of Attorney

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

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.

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 the Document

Once the document is completed, it is recommended, and sometimes mandatory, to have the form(s) signed in the presence of a 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.

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 POA 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 Option: This means that it will not be affected by your subsequent disability or incapacity, or lapse of time.
• Regular Option: This means that it 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