The best way of ensuring that you set up a power of attorney in the right way – by conforming with the requirements of your specific state – is to seek help from a firm who specialize in family law, or one that offers a range of tax services and advice. Many of the latter will be able to supply you with a power of attorney template to match your states requirements.
It’s important to note that in some states, the signature of the principal (as in, the person who initiates the POA) must be notarized, and that witnesses signatures be notarized, too.
Below is some basic guidance for setting up a power of attorney, but for further, more detailed instructions, you can seek help from a law or accounting firm:
- State law and procedures for POAs differ from state to state; no one form exists to suit all requirements
- Almost all states accept some version of the durable power of attorney
When it comes to certain key powers, such as the following:
- Making, amending or revoking a will
- Contracting a marriage
- Voting
they are not able to be delegated, and while the specific details may vary, the rules listed below typically apply throughout the US:
- POAs should be put into writing
Oral POA grants may be accepted in some areas of the country, but in general, it pays to have written clarity top avoid confusion or arguments
- The proper format must be used
It’s really important that you decide what powers you wish to grant, and ensure that a POA is made specific to those wishes. You must also use the correct form for your state, otherwise it will not be accepted by a local court of law. An attorney or accounting specialist can help you with this.
- Relevant parties must be correctly identified
The principal is the person granting the POA, while the person who receives the power of attorney is the agent, or attorney-in-fact; specific terminology may be required in your state.
- Powers must be clearly delegated
While POAs can be broad or limited, it’s important to clearly state what each specific power is.
- If the POA is durable, this must be stated
While a power of attorney typically terminates if the principal is incapacitated in some way, an agent is able to keep their powers provided the POA was written with an indication that it is ‘durable’. This designation means that the POA lasts for the principal’s lifetime, unless they choose to revoke it.
- POAs should be notarized
Whether a state requires a POA to be notarized or not, it generally makes things easier for the agent if the document has a notary’s seal and signature on it.
- POAs should be recorded
While not all POAs must be formally recorded in order to be legal, it’s standard practice for many estate planners and individuals wanting to ensure that a formal record of the document exists.
- Some POAs should be filed with a court or government office
In some states, POAs must be filed with a court or government office in order to be made valid, so it’s important to check this with an attorney or legal advisor.
To download the correct POA form for your state, check with a local law or tax preparation firm, and always seek the proper advice before going ahead.