The Basic Steps to Become a Power of Attorney

To become a power of attorney, you and the person giving you authority (called the principal) must work together to create a legal document that names you as their agent. The principal signs the document in front of a notary public or witnesses, depending on your state's rules. You do not explore to a government office or wait for approval — the principal straightforward names you, and the authority takes effect once the document is signed and notarized.

The process takes a few days to a few weeks, depending on how quickly you can get the document drafted, signed, and notarized. You will need to decide what type of power of attorney fits the situation (financial, healthcare, limited, or durable), gather any required witness signatures, and find a notary. Many banks, law offices, and shipping stores offer notary services for a small fee, usually $5 to $15 per signature.

Key Takeaways

  • The principal (the person giving you authority) must sign the power of attorney document in front of a notary or witnesses; you cannot sign it yourself or obtain it without their involvement.
  • Your state's laws determine whether the document needs a notary, witnesses, or both, and what powers you can hold — check your state's requirements before drafting.
  • You should discuss with the principal exactly what financial or healthcare decisions they want you to make, because the document will list those specific powers.
  • Once signed and notarized, the document is valid when ready (unless it says otherwise), and you can begin acting as their agent right away.
  • The principal can revoke your power of attorney at any time by signing a revocation document and notifying you and any institutions where you used the power.

Understand What Type of Power of Attorney You Need

Before you draft anything, you and the principal must agree on what kind of power of attorney makes sense. A financial power of attorney lets you handle money, bank accounts, property, and bills. A healthcare power of attorney (also called a healthcare proxy or medical power of attorney) lets you make medical decisions if the principal cannot. Some people need both.

You also need to decide whether the power should be durable or not. A durable power of attorney stays in effect even if the principal becomes mentally unable to make decisions — this is what most people want, especially for aging parents. A non-durable power of attorney ends if the principal loses mental capacity. Ask the principal which one they prefer, because this choice goes into the document itself.

A limited power of attorney gives you authority over only one specific task — for example, selling a house or handling a single bank account. This is useful if the principal wants you to handle one thing but nothing else. The document will spell out exactly what you can and cannot do.

Check Your State's Legal Requirements

Every state has different rules about how a power of attorney must be signed and witnessed. Some states require a notary only. Others require two witnesses plus a notary. A few states have their own official forms that must be used. You cannot use a generic template from the internet and assume it will work in your state — it may not be recognized by banks, hospitals, or government offices.

The easiest way to find your state's rules is to search "[your state] power of attorney requirements" or visit your state's bar association website. Many state bar associations publish free templates or checklists. If the principal is elderly or the situation is complex, consider consulting a lawyer — a straightforward power of attorney usually costs $100 to $300, and it ensures the document will be accepted everywhere the principal needs it.

Draft the Document with the Principal

You and the principal should sit down together and write out what powers you will have. For a financial power of attorney, this might include: managing bank accounts, paying bills, selling property, filing taxes, or managing investments. For healthcare, it might include: choosing doctors, approving treatments, or deciding on end-of-life care. Be specific — do not just write "all financial matters" if the principal only wants you to handle their checking account.

Many states provide free fill-in-the-blank forms on their court websites or bar association sites. If you use a template, read it carefully with the principal and cross out any powers they do not want you to have. If the principal is unsure what powers to grant, a lawyer can walk them through the options in 30 minutes to an hour.

The document must include the principal's full legal name, your full legal name, the date, and a statement that the principal is of sound mind and signing voluntarily. It should also say when the power takes effect — when ready, or only if the principal becomes unable to make decisions (called "springing" the power of attorney).

Get the Document Signed and Notarized

The principal must sign the document themselves — you cannot sign it for them, and they cannot sign it under pressure or duress. Depending on your state, they may need to sign in front of a notary public, or in front of two witnesses, or both. The notary or witnesses verify that the principal knows what they are signing and is doing so willingly.

To find a notary, call your bank, a local law office, a UPS Store, or search "notary public near me" online. Bring the unsigned document and the principal's government-issued ID. The notary will watch the principal sign, then sign and stamp the document themselves. This usually takes 10 to 15 minutes and costs $5 to $15.

If your state requires witnesses instead of or in addition to a notary, choose people who are not family members and not benefiting from the principal's will — the witnesses must be impartial. They will watch the principal sign, then sign the document themselves as proof they saw it happen.

Make Copies and Tell Relevant Institutions

Once the document is signed and notarized, make several copies. Give one to the principal, keep one for yourself, and send copies to any bank, investment firm, insurance company, or healthcare provider where you might need to use it. Do not wait until you need to act — send the copies now so the institutions have them on file and will recognize your authority when you call or visit.

Some banks and hospitals have their own power of attorney forms they prefer. Ask them before the principal signs anything. If they do, the principal may need to sign their form as well as the state form, or the institution may accept your state form without requiring their own.

Keep the original signed document in a safe place — a safe deposit box, a home safe, or with a lawyer. You will need to show it whenever you act as power of attorney, so you need to know where it is.

Understand Your Duties and Limits as Agent

Once you become a power of attorney, you have a legal duty to act in the principal's best interest, not your own. This means you cannot use their money for yourself, you must keep their finances separate from yours, and you must keep records of everything you do. If the principal later claims you misused your power, you may have to prove you acted honestly and carefully.

Your power ends if the principal revokes it (by signing a revocation document and notifying you and their institutions), if the principal dies, or if the principal becomes mentally unable to make decisions and the power of attorney was not durable. Some powers also end on a date the principal set in the document itself.

You have no power to act on the principal's behalf unless the document specifically gives you that power. If the document says you can manage bank accounts but not sell property, you cannot sell their house, even if you think it is a good idea. Stick to exactly what the document allows.

Frequently Asked Questions

Can I become a power of attorney if the principal is already in the hospital or nursing home?

Yes, as long as the principal is mentally able to understand what they are signing. A doctor can confirm this if there is any doubt. If the principal is no longer able to make decisions, you cannot become a power of attorney — you would need to go to court and ask to become their legal guardian instead, which is a longer process.

Do I need a lawyer to create a power of attorney?

No, but it helps if the situation is complicated or if the principal is worried about the document being challenged later. For a straightforward financial or healthcare power of attorney, you can use your state's free template and have it notarized yourself. A lawyer usually charges $100 to $300 for a straightforward power of attorney.

What happens if I die or become unable to act as power of attorney?

The power of attorney ends. The principal would need to name a new agent by signing a new document. If the principal is no longer able to do this, the court may need to appoint a guardian or conservator to manage their affairs.

Can the principal still make decisions if I am their power of attorney?

Yes, absolutely. The principal keeps all their rights and can make decisions themselves. Your power of attorney only lets you act on their behalf if they ask you to or if they become unable to act. You do not take over their life.

How do I prove I am the power of attorney when I need to use it?

Show the signed, notarized power of attorney document. Banks and other institutions may ask you to sign a form confirming you are acting as their agent. Keep a copy of the power of attorney with you whenever you might need to use it.