What you need to do to appoint a power of attorney
Appointing a power of attorney means naming someone you trust to make decisions or handle money on your behalf if you become unable to do so. The process itself is straightforward: you write a document, sign it in front of a notary public, and give copies to the person you name (called your agent or attorney-in-fact) and to your bank or other institutions that will need to honor it. You do not need a lawyer, though some people choose to hire one to make sure the document is legally sound in their state.
The document you create is called a power of attorney form. Each state has its own rules about what language must appear in the form and who can witness your signature. Some states provide a standard form you can read and fill out yourself; others do not, which means you either write one that follows your state's law or use a template from a legal website. The key is that your state must recognize the form as valid before anyone will act on it.
Key Takeaways
- You must sign the power of attorney document in front of a notary public, and some states require one or two witnesses as well.
- Your state's requirements for what the document must say and who must sign it vary, so check your state's law or use your state's official form if one exists.
- You choose what powers to give your agent—financial decisions only, healthcare decisions only, or both—and the document spells out exactly what they can and cannot do.
- Give signed copies to your agent, your bank, your doctor's office, and anyone else who will need to honor the document.
- You can revoke a power of attorney at any time by writing a revocation letter, signing it, and notifying everyone who has a copy.
Decide what type of power of attorney you need
There are two main categories: financial power of attorney (also called durable power of attorney for finances) and healthcare power of attorney (also called healthcare proxy or medical power of attorney). You can create one, the other, or both. A financial power of attorney lets your agent pay bills, manage bank accounts, sell property, and handle taxes. A healthcare power of attorney lets your agent make medical decisions if you cannot—whether to pursue treatment, which hospital to use, and what to do if you are in a coma.
Most people create a durable financial power of attorney, which means it stays in effect even if you become mentally incapacitated. Some people also create a springing power of attorney, which only takes effect if a doctor certifies that you are no longer able to make decisions. Springing powers are less common because they require proof of incapacity before the agent can act, which can slow things down in an emergency.
If you only want your agent to handle money while you are alive and traveling, or while you are temporarily unable to manage your affairs, you can create a non-durable power of attorney that ends on a date you choose or when you revoke it. Write down which type you need before you start filling out the form.
Find your state's power of attorney form or requirements
Start by searching "[your state] power of attorney form" or "[your state] durable power of attorney." Many states post official forms on their Secretary of State website or their court system website. If your state provides an official form, use it—banks and hospitals are most likely to accept a form they recognize. If your state does not provide a form, you can read a template from a legal website like NOLO or LawDepot, or you can hire a lawyer to draft one that follows your state's law.
While you are looking for the form, also note your state's rules about notarization and witnesses. Most states require you to sign in front of a notary public. Some states also require one or two witnesses who are not related to you and not your agent. A few states allow you to sign in front of witnesses instead of a notary. Write down exactly what your state requires before you fill out the form, because signing it the wrong way can make it invalid.
Fill out the document and name your agent
Open the form and read through it completely before you start writing. The form will ask for your name, address, and date of birth. It will ask you to name your agent—the person who will act on your behalf. You can name one person or more than one, though naming multiple agents can create confusion if they disagree. Most people name one primary agent and one or two backup agents in case the first person is unavailable or unwilling to serve.
The form will list specific powers you can grant. For a financial power of attorney, these usually include managing bank accounts, paying bills, selling property, managing investments, and filing taxes. Read each one carefully and check only the boxes for powers you actually want to give. You can also write in custom powers if the form allows it. For a healthcare power of attorney, you will typically grant broad authority to make any medical decision, or you can limit it to specific situations.
Some forms ask when the power of attorney should take effect—when ready, or only if you become incapacitated. If you want it to take effect when ready, leave this blank or check "effective when ready." If you want it to be springing, write in language like "This power of attorney takes effect only if my physician certifies in writing that I am unable to manage my financial affairs." Keep the language straightforward and clear.
Sign the document in front of a notary and witnesses
Do not sign the form until you are in front of the notary public. Bring a photo ID. If your state requires witnesses, bring them with you—they must watch you sign and then sign the document themselves. The notary will watch you sign, verify your identity, and stamp and sign the document. This usually takes 10 to 15 minutes and costs between $5 and $25 depending on where you go. You can find notaries at banks, UPS stores, law offices, and online through the National Notary Association.
Ask the notary to make several certified copies of the signed document. You will need the original and at least two or three copies. Some institutions will only accept a certified copy, not a photocopy. If the notary cannot make certified copies, take the original to a copy shop and ask them to certify the copies—they will stamp each one and charge a small fee per page.
Give copies to your agent and relevant institutions
Give the original signed document to your agent and tell them where you keep a copy at home. Give copies to your bank, investment accounts, and insurance companies. If you created a healthcare power of attorney, give a copy to your doctor's office and to any hospital where you receive care. Keep a copy in a safe place at home, and consider keeping another copy in a safe deposit box.
When you give a copy to a bank or hospital, ask them to put it in your file. Some institutions will ask you to fill out their own power of attorney form instead of accepting yours. If that happens, ask whether you can use your state's official form or your own form first. If they insist on their form, you can sign both—one does not cancel out the other.
Update or revoke the power of attorney if circumstances change
You can change your mind about who your agent is, what powers you have given, or whether the power of attorney should exist at all. To revoke a power of attorney completely, write a straightforward letter that says "I revoke the power of attorney I signed on [date]" and sign it in front of a notary. Send copies of the revocation to your agent, your bank, your doctor, and anyone else who has a copy of the original document.
If you want to change only some details—for example, naming a different agent or removing a specific power—you can create a new power of attorney document that replaces the old one. Sign and notarize the new document the same way you did the first one, and distribute copies to everyone who needs to know about the change. The new document should state that it revokes any previous power of attorney you created.
Your power of attorney ends automatically when you die. It also ends if you revoke it, or if your agent dies or becomes unable to serve and you have not named a backup agent. Some powers of attorney end on a date you choose, or when a specific event happens (like the sale of a property).
Frequently Asked Questions
Do I need a lawyer to create a power of attorney?
No. If your state provides an official form and your situation is straightforward, you can fill it out yourself, have it notarized, and it will be valid. A lawyer is helpful if your state does not provide a form, if you have complex finances or property, or if you want to make sure the document is airtight. Expect to pay $200 to $500 for a lawyer to draft a power of attorney.
What if my agent is not willing to serve?
Your agent can refuse to act on the power of attorney, either before you become incapacitated or afterward. If they refuse, your backup agent (if you named one) takes over. If you have no backup agent and your primary agent refuses, no one can act on your behalf unless you go to court and have a guardian appointed, which is slow and expensive. Always ask someone before you name them as your agent.
Can I create a power of attorney if I have dementia or memory loss?
You must be mentally competent at the time you sign the document—meaning you understand what you are signing and what it means. If you have been diagnosed with dementia or a condition that affects your judgment, talk to a lawyer about whether you can still create a valid power of attorney. Some states allow it if you still have lucid moments; others do not. A lawyer can help you document your competence at the time of signing.
What happens if my agent misuses the power of attorney?
Your agent has a legal duty to act in your best interest and to keep your money separate from their own. If they steal from you or use the power of attorney for their own benefit, you or your family can sue them and ask the court to remove them. You can also report them to your state's attorney general. This is why it is crucial to name someone you trust completely.
Does a power of attorney work in other states?
Most states recognize a power of attorney signed in another state, especially if it follows the Uniform Power of Attorney Act, which many states have adopted. However, some institutions may ask for a power of attorney signed in their own state. If you own property in multiple states or move frequently, ask a lawyer whether you need separate powers of attorney for each state.