how to set up a power of attorney
you can buy or download a poa template but be sure it s for your state because requirements can differ there s no standard poa form for all 50 states although all states do accept some version of a durable power of attorney 1a few key powers cannot be delegated including the right to make amend or revoke a will or contract a marriage in most states although a handful of states do allow this you can t delegate the power to vote but the guardian can request a ballot on behalf of the principal some rules generally apply in all states and jurisdictions some regions of the country accept oral poa grants but verbal instruction isn t a reliable substitute for spelling out the terms word for word on paper written clarity helps to avoid arguments and confusion later at a crucial time decide what powers you want to grant and prepare a poa that s specific to that desire the poa must also satisfy the requirements of your state perform an internet search or ask a local estate planning professional to help you find a form that will be accepted by a court of law in the state where you live the best option is to seek the help of an attorney a poa can be as broad or as limited as the principal wishes but each of the powers granted must be clear even if the principal grants the agent a general poa the principal can t grant sweeping nonspecific authority such as i delegate all things having to do with my life a poa terminates if the principal becomes incapacitated in most states the only way an agent can keep their power if this happens is if the poa is written with an indication that it s durable this designation makes it last for the principal s lifetime unless the principal revokes it powers of attorney must be notarized in most states it s potentially easier for the agent if a notary s seal and signature are on the document even in states that don t require it some states require that specific kinds of poas be filed with a court or government office before they can be made valid so look into the rules where you live ohio requires that any poa used to grant grandparents guardianship over a child must be filed with the juvenile court 4 it also requires that a poa that transfers real estate must be recorded by the county in which the property is located 5not all powers of attorney must be formally recorded or filed but it s a standard practice for many estate planners and individuals who want to create a record that the document exists file it with your state or county to be on the safe side you can start the process of establishing a power of attorney by locating a lawyer who specializes in family or estate law in your state legal services offices that are staffed with credentialed attorneys exist in virtually every part of the united states if attorney fees are more than you can afford visit the legal services corporation s website and use the get legal help search function clients who qualify will receive pro bono cost free assistance 6choosing an agenta poa grants immense ownership authority and responsibility it s a matter of life and death in the case of a medical poa you could find yourself facing financial privation or bankruptcy if you end up with a mishandled or abused durable poa choose your agent with the greatest care to ensure your wishes are carried out to the greatest extent possible it s critical to name someone who is both trustworthy and capable to serve as your agent any mistakes may be difficult to correct and there may be a danger of self dealing depending on the extent of the powers you grant an agent may have access to your bank accounts the power to make gifts and transfer your funds and the ability to sell your property your agent can be any competent adult including a professional such as an attorney accountant or banker but they may also be a family member such as a spouse an adult child or another relative naming a family member as your agent saves the fees a professional would charge and may also keep confidential information about your finances and other private matters in the family parents who create poas often choose their adult children to serve as their agents the relative youth of the child is an advantage when the purpose of the poa is to relieve a parent of the burden of managing the details of financial and investment affairs or provide management for their affairs should they become incapacitated a spouse who is near the same age as the person creating the poa may come to suffer the same debilities that led the poa s creator to establish the poa in the first place a child who is honest capable and who respects the parent s desires can be a good choice for an agent but there may be complications parents may struggle with the decision of who to select if they have more than one child the good news is that you can have multiple poas naming separate agents and customize them for each child s skill set temperament and ability to act on your behalf specific abilities of your children may make them best suited to take on particular roles in managing your affairs you can use limited poas to give each child different defined and limited power over specific aspects of your finances more than one agent can be named in a poa either with the authority to act separately or they can be required to act jointly having two agents who are separately authorized to manage routine items can be a convenience if one becomes unavailable for some reason requiring two or more to agree on major actions like selling a house can ensure family agreement over major decisions but naming multiple agents can cause problems if disputes arise between them an investment account may be effectively frozen if two agents are required to act jointly in managing it but they disagree as to how to do so be sure that your chosen agents not only have the skills for the task but personalities to cooperate a general poa enables the agent to act with the authority of the poa s creator in all matters a special poa can limit that authority to a specific subject such as managing an investment account or to a limited time when the creator of the poa is unavailable maybe one of your agents is a busy financial expert who lives in a distant city and another works part time and lives conveniently close by you can have one poa that names the first to manage your investment portfolio and another that names the second to manage your routine daily expenses if necessary and pay your monthly bills risks and precautionsperiodically review and update the poas you ve created when and if family circumstances change you can cancel a poa by simply writing a letter that identifies it and states that you re revoking it then delivering the letter to your former agent some states require such a letter to be notarized it s also a good idea to send copies to third parties with whom the agent may have acted on your behalf then create a new poa and deliver it to your new choice of an agent 3a power of attorney can provide you with both convenience and protection by giving a trusted individual the legal authority to act on your behalf and in your interests adult children who are both trustworthy and capable of accomplishing your wishes may make the best agents but don t name a person simply because they re related to you trusted professional advisors such as lawyers accountants and doctors can help you understand the wisdom and necessity of adopting poas you can do so gradually if you aren t comfortable granting broad powers all at once but don t delay there could be costly consequences because the grantor must be mentally competent to create a power of attorney it s too late to create a poa if you lose the capacity to manage your affairs court proceedings may be required at that point it would become necessary for someone to go to court to ask to be named as your conservator or guardian a process that may prove costly and slow it could also be contested leading to family conflicts make sure the poa requires that the agent periodically report all actions taken to a trusted third party whom family members agree upon such as the family s lawyer or accountant you can also name two agents and require they agree on major transactions such as the sale of a home nobody may have the right to take individual retirement account ira distributions the parent needs for income borrow funds to pay medical bills or deal with the internal revenue service irs concerning the parent s taxes can somebody with power of attorney do anything they please no the scope of legal authority that s granted by a poa is laid out when it s established the person who is granted power of attorney has a legal fiduciary duty to make decisions that are in the best interests of the person they re representing 3can next of kin override a power of attorney no next of kin or other family members do not have any legal authority to override or nullify an existing power of attorney 