What is the Power of Attorney (POA)?

A Power of Attorney (POA) is a legal document allowing you to appoint someone to manage your finances, real estate, business, and more on your behalf. In this arrangement, you are the “principal,” and the person you choose to act for you is the “attorney-in-fact” or “agent,” depending on your state's terminology.

Who Needs a Power of Attorney Form?

There are various reasons you might need a Power of Attorney form. This document ensures someone can act on your behalf if you're unavailable or unable to make decisions. Consider setting up a POA if:

• You travel frequently and need someone to handle matters in your absence.
• You work in a high-risk environment.
• You're facing a serious illness or have children and wish to prepare for emergencies.
• You own a business or property that requires ongoing management.
• You want to assign someone specific to handle your personal or business affairs.
• You're preparing for older age or planning an estate.

A Power of Attorney is a critical element in an estate plan. For example, a Durable Power of Attorney allows your agent to manage your affairs if you become incapacitated.

Types of Power of Attorney Forms

There are two primary types of Power of Attorney documents:

• Ordinary Power of Attorney: Remains valid only while the principal is mentally competent.
• Durable Power of Attorney: Stays in effect even if the principal becomes incapacitated, providing continuous support.

All POAs are either Ordinary or Durable, with additional options to suit specific needs:

• General Power of Attorney: Grants broad authority over finances and property.
• Specific Power of Attorney: Limits authority to specific actions, like buying or selling property.
• Springing Power of Attorney: Becomes effective upon a specified event, such as incapacitation.

What Powers Can You Grant to an Attorney-in-Fact?

You have the flexibility to specify what powers your agent holds. Common powers include:

• Finance: Handle payments, manage accounts, and make financial decisions.
• Legal: File lawsuits, communicate with lawyers, and complete court documents.
• Real Estate: Manage, sell, or lease property in your name.
• Business: Oversee business operations, make investment decisions, and act on your behalf in shareholder meetings.

Other actions you can authorize include handling family expenses, managing taxes, buying or selling goods, making donations, and overseeing insurance or retirement plans.

Choosing an Attorney-in-Fact

Selecting the right person to act on your behalf is essential. Ensure your chosen representative meets the legal requirements, including being over the age of majority, not bankrupt, and not affiliated with your care facility (if applicable). You can name multiple attorneys-in-fact or a professional fiduciary, like an accountant or lawyer, for added support.

Is Notarization Required for a Power of Attorney?

Notarization requirements vary by state. Some states mandate two witnesses, while others require notarization. If your state mandates it, our document includes a notarization section. You can also use an online notary for added convenience.