Do-It-Yourself Power of Attorney

By David Carnes

A power of attorney grants someone else the power to perform legal acts for you, such as consenting to medical treatment or signing a contract in your name. Some states require the use of statutory forms for certain purposes, and some websites offer optional templates that you can use. You can use a power of attorney that you drafted yourself as long as it complies with state law.

A power of attorney grants someone else the power to perform legal acts for you, such as consenting to medical treatment or signing a contract in your name. Some states require the use of statutory forms for certain purposes, and some websites offer optional templates that you can use. You can use a power of attorney that you drafted yourself as long as it complies with state law.

Parties

There are generally two parties to a power of attorney -- a principal and the agent who performs legal acts on the principal's behalf. It is possible, however, to appoint more than one agent. The agent is bound by legal fiduciary duties regardless of the terms of the power of attorney. This means he must perform his acts with reasonable care, and he must act with strict loyalty to the principal. He may not profit from any disposition of the principal's assets, even if his profit does not hurt the principal. He may accept a reasonable fee in return for his services if so authorized by the principal. It is legally impossible to create an irrevocable power of attorney -- the principal may revoke it at any time, as long as he is mentally competent and able to communicate his intentions.

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Content

The power of attorney must clearly identify the principal and the agent and should specify exactly what legal acts the agent is entitled to perform. A seriously ill patient, for example, might authorize his physician to consent to treatment on his behalf or to choose from among several alternative treatments. The power of attorney should also state whether or not it is "durable." It is durable if it continues in effect even when the principal is mentally incompetent or unable to communicate. If the power of attorney does not mention durability, different states will apply different presumptions -- some states will treat it as durable, while other states will treat it as non-durable. Some states, such as Pennsylvania, require the inclusion of certain language provided by statute, such as a notice to the principal concerning the agent's legal rights and duties.

Execution

Different states apply different requirements for the execution of a power of attorney. In some states, a notary public must acknowledge the principal's signature by sealing and signing the document. Other states require at least two people to witness the principal's signature and to sign the power of attorney. If these formal requirements are not complied with, the power of attorney will not be valid.

Gift Riders

Many states impose additional legal requirements to empower an agent to make gifts to third parties out of the principal's assets. New York, for example, requires the execution of a separate gift rider, the contents of which must include language identical to wording provided by state statute. An agent who makes a gift out of the principal's funds when the power of attorney fails to comply with state statutory requirements risks civil and perhaps criminal liability. An agent may never make a gift to himself out of the principal's assets.

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References

Related articles

Power of Attorney Guidelines for State of Oregon

A power of attorney is a legal document that allows you to appoint someone to act on your behalf if you become incompetent of incapacitated. The Oregon Revised Statutes set forth the requirements for a valid power of attorney, who may serve as your agent and how the power of attorney may be used.

How to Obtain Power of Attorney

You may face circumstances that require you to perform legal acts, such as withdrawing money from a bank account or consenting to medical treatment, on behalf of another person, known as the principal, who cannot perform these acts himself due to disability or other adverse circumstance. A valid power of attorney will allow you to perform these acts as agent for the principal without legal liability. Hospitals and banks often offer standardized power of attorney forms that have been drafted in accordance with state law. Otherwise, you may draft the appropriate form yourself.

Durable Power of Attorney for Kentucky

A durable power of attorney is a power of attorney that becomes or remains valid when the principal goes unconscious, becomes mentally incompetent or loses the ability to communicate. It is normally used when the principal is a seriously ill patient, to allow the agent to make medical or financial decisions on behalf of the principal.

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