Power of Attorney (POA)

Definition

Legal document wherein an individual authorizes another person ( the attorney-in-fact)  to act on behalf of another person, by carrying out certain transactions.

The person giving the authority for the attorney-in-fact to act on his/her behalf is the grantor or principal.

A POA can be durable or nondurable. A durable POA continues to be in effect in the event the grantor/principal becomes incapacitated, while a nondurable POA would cease to be in effect( in the event the grantor/principal becomes incapacitated.

A durable POA is generally required to include specific language, confirming that it remains in effect in the event of incapacitation.

Referring Cite

State law

Additional Helpful Information

      1. A POA ceases to be in effect upon the death of the grantor/principal
      2. Financial institutions should be consulted to determine if and when they would accept POAs.  Many will accept POAs, but only in limited cases. For instance, some will not use a POA to change a beneficiary designation . Some will only allow transactions that are specifically identified in the POA.