Takeaways
- POA is a legal document that grants someone you trust the authority to act on your behalf.
- The first step in creating a POA is choosing a trusted attorney-in-fact or agent.
- POA types include Durable, Special, Financial, Springing, and Medical.
- You should always choose a trustworthy, organized agent who respects your wishes.
In your power of attorney document, you can allow your agent or attorney-in-fact to represent you only concerning the specific matters you specify.
This article explains how to give someone power of attorney, the main types of POA, and how to choose the right agent for the role.
Checklist: Responsibilities of a Power of Attorney Agent
A POA agent’s exact responsibilities depend on the type of POA you make. However, in virtually all cases your agent should:
- Follow your instructions: Respect any limits and follow all terms of the POA.
- Act in your best interests: Your agent should always make decisions for your benefit, not their own.
- Manage matters carefully: Agents also need to handle important records and decisions responsibly, keeping records of all relevant transactions and decisions.
Identify the Scope of Authority with the right POA
Before making any rash decisions, speak to an attorney to get a better idea of the process. The decision is entirely yours.
However, remember that your attorney will know every detail involved in preparing a power of attorney document. If you have difficulty deciding, they can also provide professional advice.
Every Power of Attorney document should reflect the principal's wishes and POA rights and limitations. Here are the different types:
| POA Document | Scope of the Document | Authority & Effect |
|---|---|---|
| Durable Power of Attorney | Financial, property, and personal affairs | Your agent’s authority continues if you become incapacitated. Depending on the document and state law, the authority may begin immediately or at a later time. |
| Special or Limited POA | Specific tasks or limited matters | Your agent can act only within the powers you grant. The authority may end once the specified task is completed, on a stated date, or under other terms in the document. |
| Financial POA | Financial and business matters | Your agent can perform only the financial actions you authorize. A financial POA may also be durable, allowing that authority to continue if you become incapacitated. |
| Springing POA | Authority triggered by a future event | Your agent gains authority only when the specified event occurs and any required conditions are met. The rules for determining incapacity can vary by state. |
| Medical POA | Healthcare and medical decisions | Your healthcare agent generally acts when you cannot make or communicate medical decisions yourself, subject to your document and state law. |
How To Choose an Agent
Because of the significant powers a POA grants an agent, choosing your agent wisely is vital. The following are five considerations to keep top of mind when picking an attorney in fact for your POA.
- Choose someone you trust: You should always choose someone who you believe has your best interests in mind, as they can make important decisions about your health and finances.
- Select someone who lives near you: Your agent may be able to handle urgent matters quickly if they live nearby. This is less important these days, but is still something to consider.
- Pick someone organized and level-headed: Try to choose someone who will remain level-headed and calm in stressful situations. They also need to be well-organized.
- Make sure they respect your wishes: One of the most important factors to consider is that your agent should always respect your decisions and the limits of the power of attorney.
- Confirm they are willing to serve: Talk to the person before naming them. Make sure they understand the role and have time to take it on.
How To Grant and File a Power of Attorney
Depending on the state, you may need to file a power of attorney with a court or government office before making them effective.
Ohio, for example, requires that grandparents file with the juvenile court for cases involving the Power of attorney vs a guardianship of a child.
In general, you can follow these steps:
1. Draft and complete the POA
Start by confirming the powers you want to give your agent. You can use a power of attorney template to put those instructions in writing. You should always include the names of the principal and agent and any limits or conditions that apply.
2. Review your state’s requirements
Make sure to check your state’s rules before signing. You may need to have witnesses, get the document notarized, or use specific statutory language.
3. Sign and validate the document
Sign the POA, following all your state’s rules and formalities. Make sure you and your agent both keep a copy of the document for your records.
4. File or share the POA if required
Most POAs do not automatically require court filing, but recording or filing may be required in certain situations, like real estate transactions or specialized POAs.
Give copies to your agent and any bank, healthcare provider, or other institution that may need to rely on it.
Create your Power of Attorney now
Giving Someone Power of Attorney FAQs
-
Can I have different agents for medical and financial decisions?
Yes, depending on your circumstances, one person may manage your financial affairs, and another might handle your health care. However, you may wish to have one person handle every aspect of your life to avoid unnecessary complications.
-
What happens if an agent benefits from a transaction?
An agent has a fiduciary duty towards you as the principal. This means that person must act towards your benefit, especially in financial matters.
However, depending on state law, your agent can enter into deals that they benefit from themselves. So long as they act to your benefit as well, there is no breach of their fiduciary duty.
-
Does my agent need to be a lawyer?
Despite being formally known as an attorney in fact, it is not required that your agent have legal training or be a lawyer.
Takeaways
- POA is a legal document that grants someone you trust the authority to act on your behalf.
- The first step in creating a POA is choosing a trusted attorney-in-fact or agent.
- POA types include Durable, Special, Financial, Springing, and Medical.
- You should always choose a trustworthy, organized agent who respects your wishes.
In your power of attorney document, you can allow your agent or attorney-in-fact to represent you only concerning the specific matters you specify.
This article explains how to give someone power of attorney, the main types of POA, and how to choose the right agent for the role.
Checklist: Responsibilities of a Power of Attorney Agent
A POA agent’s exact responsibilities depend on the type of POA you make. However, in virtually all cases your agent should:
- Follow your instructions: Respect any limits and follow all terms of the POA.
- Act in your best interests: Your agent should always make decisions for your benefit, not their own.
- Manage matters carefully: Agents also need to handle important records and decisions responsibly, keeping records of all relevant transactions and decisions.
Identify the Scope of Authority with the right POA
Before making any rash decisions, speak to an attorney to get a better idea of the process. The decision is entirely yours.
However, remember that your attorney will know every detail involved in preparing a power of attorney document. If you have difficulty deciding, they can also provide professional advice.
Every Power of Attorney document should reflect the principal's wishes and POA rights and limitations. Here are the different types:
| POA Document | Scope of the Document | Authority & Effect |
|---|---|---|
| Durable Power of Attorney | Financial, property, and personal affairs | Your agent’s authority continues if you become incapacitated. Depending on the document and state law, the authority may begin immediately or at a later time. |
| Special or Limited POA | Specific tasks or limited matters | Your agent can act only within the powers you grant. The authority may end once the specified task is completed, on a stated date, or under other terms in the document. |
| Financial POA | Financial and business matters | Your agent can perform only the financial actions you authorize. A financial POA may also be durable, allowing that authority to continue if you become incapacitated. |
| Springing POA | Authority triggered by a future event | Your agent gains authority only when the specified event occurs and any required conditions are met. The rules for determining incapacity can vary by state. |
| Medical POA | Healthcare and medical decisions | Your healthcare agent generally acts when you cannot make or communicate medical decisions yourself, subject to your document and state law. |
How To Choose an Agent
Because of the significant powers a POA grants an agent, choosing your agent wisely is vital. The following are five considerations to keep top of mind when picking an attorney in fact for your POA.
- Choose someone you trust: You should always choose someone who you believe has your best interests in mind, as they can make important decisions about your health and finances.
- Select someone who lives near you: Your agent may be able to handle urgent matters quickly if they live nearby. This is less important these days, but is still something to consider.
- Pick someone organized and level-headed: Try to choose someone who will remain level-headed and calm in stressful situations. They also need to be well-organized.
- Make sure they respect your wishes: One of the most important factors to consider is that your agent should always respect your decisions and the limits of the power of attorney.
- Confirm they are willing to serve: Talk to the person before naming them. Make sure they understand the role and have time to take it on.
How To Grant and File a Power of Attorney
Depending on the state, you may need to file a power of attorney with a court or government office before making them effective.
Ohio, for example, requires that grandparents file with the juvenile court for cases involving the Power of attorney vs a guardianship of a child.
In general, you can follow these steps:
1. Draft and complete the POA
Start by confirming the powers you want to give your agent. You can use a power of attorney template to put those instructions in writing. You should always include the names of the principal and agent and any limits or conditions that apply.
2. Review your state’s requirements
Make sure to check your state’s rules before signing. You may need to have witnesses, get the document notarized, or use specific statutory language.
3. Sign and validate the document
Sign the POA, following all your state’s rules and formalities. Make sure you and your agent both keep a copy of the document for your records.
4. File or share the POA if required
Most POAs do not automatically require court filing, but recording or filing may be required in certain situations, like real estate transactions or specialized POAs.
Give copies to your agent and any bank, healthcare provider, or other institution that may need to rely on it.
Create your Power of Attorney now
Giving Someone Power of Attorney FAQs
-
Can I have different agents for medical and financial decisions?
Yes, depending on your circumstances, one person may manage your financial affairs, and another might handle your health care. However, you may wish to have one person handle every aspect of your life to avoid unnecessary complications.
-
What happens if an agent benefits from a transaction?
An agent has a fiduciary duty towards you as the principal. This means that person must act towards your benefit, especially in financial matters.
However, depending on state law, your agent can enter into deals that they benefit from themselves. So long as they act to your benefit as well, there is no breach of their fiduciary duty.
-
Does my agent need to be a lawyer?
Despite being formally known as an attorney in fact, it is not required that your agent have legal training or be a lawyer.
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