POA - Power of Attorney

A Power of Attorney (POA) is a legal document that grants someone, called the agent or attorney-in-fact, the authority to manage the affairs of another person, called the principal. When writing a POA, the principal defines what powers they want to grant, when those powers go into effect, who receives the powers (agents), and how those agents must make decisions. The document must be created while the principal is mentally competent and must be notarized. The principal can revoked or change the document at any time, as long as they are mentally competent.

Laws governing POAs vary by state, so it’s important to consult local laws or an attorney when creating one.

Scoped POAs

A POA may grant broad powers to the agent, allowing them to handle all of the principal’s affairs, or scoped to a particular set of responsibilities. Examples of scoped POAs include Financial POAs and Medical POAs.

Effect Conditions

The principal must specify when the agents receive the powers outlined in the POA. A standard Power of Attorney takes effect immediately and ends when the principal becomes incapacitated. A Durable Power of Attorney extends the standard POA until the death of the principal, allowing the agent to make decisions when the principal is incapacitated. A Springing Power of Attorney grants only becomes effective when a specific event occurs, like the incapacitation of of the principal.

Naming Agents

More than one agent can be given powers in a POA document. These agents are called “co-agents”.

The principal can also define “successor agents”: people who step in as their agent in the event the person named as the agent is unable or unwilling to act as the POA.