Is Power of Attorney in One State Recognized by Another State?

By Heather Frances J.D.

A power of attorney is a legal document in which you give someone else the authority to act on your behalf. The person you grant authority to is referred to as your agent, and you are referred to as the principal. Though each state’s laws provide rules for powers of attorney created in that state, it could get confusing if you had to create a separate document for each state in which you wish to authorize an agent. Therefore, most states accept powers of attorney created under another state’s laws, particularly if they meet the new state's requirements.

Powers of Attorney

States all recognize varying types of powers of attorney. Special powers of attorney grant permission for your agent to perform a specific task or a small group of tasks, such as accessing one bank account on your behalf. General powers of attorney give an agent much broader authority, such as the authority to manage all your financial affairs. Regardless of the document’s subject matter, a durable power of attorney continues on in the event that you become incapacitated, while a non-durable power of attorney terminates as soon as you become mentally incapacitated.

State-Specific Requirements

State laws determine the requirements of a valid power of attorney. The specific requirements vary, but most states require that powers of attorney be witnessed by two disinterested witnesses and notarized. However, not all states require these formalities for all powers of attorney. For example, New York durable powers of attorney must be notarized but do not require witness signatures unless the power of attorney grants the agent the authority to give gifts over $500. In contrast, Illinois requires witnesses and a notary for a power of attorney that grants authority over property regardless of whether that document authorizes the agent to give gifts.

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Acceptance Among States

Though states have their own requirements, state laws generally recognize powers of attorney that were validly created in another state or that meet the state’s own requirements. For example, if you create a power of attorney in a state that requires two witness signatures but no notary, it may be accepted in a state that requires notarization simply because it was validly created under the original state’s laws. However, states have the ability to refuse to recognize powers of attorney created in other states, so you should check the laws of any state in which your agent may need to use the document. You may also wish to have your power of attorney witnessed and notarized, even if your state does not require such formalities, to increase the likelihood that your document will be recognized by a more formal state.

Getting a New Document

Though many powers of attorney are recognized in other states, it may be a good idea to get a new power of attorney when you move to a new state. For example, Connecticut law does recognize powers of attorney to convey real estate unless the power of attorney is signed by two witnesses and notarized, even if the previous state did not require such formalities. A company with which you hope to do business may not feel comfortable accepting a power of attorney that comes from another state even if it is technically valid in the company's state. It can be especially important to get a new medical power of attorney, since different states define medical terms differently: doctors may not know how to interpret a power of attorney made in a state with different definitions.

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The Louisiana Statute on Durable Power of Attorney
 

References

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A Durable Power of Attorney for the State of Virginia

People create powers of attorney for many reasons, from estate planning to preparing to be hospitalized. As a Virginia resident, you can establish a power of attorney by satisfying a few legal requirements. You also have the flexibility of granting as much or as little power over your affairs as you want, and you may revoke your power of attorney at any time.

How to Create Power of Attorney Forms

A power of attorney is a legal document that authorizes another person to act on your behalf in certain specified situations. State law governs the creation and validity of power of attorney forms. These forms oversee the agency relationship between the principal, who is the person who created the power of attorney, and the agent or attorney-in-fact, who is the person receiving authority to do something in the power of attorney. Powers of attorney can authorize a variety of decision-making powers -- such as financial or health care decisions or decisions that affect your children -- in the event that you become unable to make such decisions.

Can a Person Give or Turn Over Her Power of Attorney to Someone Else?

Although a power of attorney involves two persons, it is not a contract and can be unilaterally revoked. The person making the document, termed the principal, uses the power of attorney to name an agent to act for her. A competent principal is free to revoke that authority at any time and confer it on another agent. The person named as agent can also decline to serve but cannot give or transfer her authority under the power of attorney to another.

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