What It Takes to Become a Power of Attorney
Becoming a power of attorney is not something you explore for or earn through training. Instead, the person who wants you to act on their behalf — called the principal — names you in a legal document. Your role only begins once that document is signed, notarized, and (in some cases) filed with a court or government office. You do not need a license, certification, or permission from anyone but the principal.
The principal chooses you based on trust, not credentials. They might pick a family member, a close friend, a professional like an accountant or attorney, or a combination of people. What matters is that the principal believes you will act in their best interest and follow the instructions in the power of attorney document itself.
Key Takeaways
- A principal (the person granting power of attorney) must choose you and sign a legal document naming you as their agent — you cannot nominate yourself.
- The document must be signed in front of a notary public in most states, and some types require witnesses or court filing as well.
- Your authority only covers what the document explicitly states — you might have power over finances, healthcare decisions, or both, depending on what the principal wrote.
- You have a legal duty called a fiduciary duty to act honestly, keep records, and put the principal's interests ahead of your own.
- The principal can revoke the document at any time while they are mentally capable, which ends your authority when ready.
Being Selected by the Principal
The principal must choose you while they are mentally competent — meaning they understand what they are doing and why. This is the first and most important step. The principal might ask you directly, or they might decide on their own and tell you afterward. Either way, you should have a conversation about what the role involves before the document is signed.
You can decline the role. If you accept, you are agreeing to follow the principal's instructions and act in their interest, not your own. This is a legal responsibility, not just a favor. Before you agree, make sure you understand what decisions you will be making (money, medical care, property, or all three) and whether you have the time and knowledge to do it well.
The principal might also name alternate agents — people who step in if you cannot or will not serve. Some principals name co-agents, meaning two or more people share the role and must agree on decisions. Ask the principal how they want it structured before they sign the document.
The Document Must Be Signed and Notarized
The power of attorney document is a legal form that spells out exactly what authority the principal is giving you. It must be signed by the principal in front of a notary public — a person authorized by the state to witness signatures and verify identity. The notary does not decide whether the power of attorney is a good idea; they only confirm that the person signing is who they say they are and that they are signing willingly.
Most states require one notary. Some states require two witnesses in addition to the notary, or witnesses instead of a notary, depending on the type of power of attorney. A few states require the document to be filed with a court or county office before it becomes valid. Check your state's rules before the principal signs, because signing the wrong way means the document will not work.
The principal should keep the original signed document in a safe place — a safe deposit box, home safe, or attorney's office. You will need a certified copy (a copy stamped by the notary or court) to show banks, hospitals, or other institutions when you need to act on the principal's behalf. Ask the principal for at least one certified copy before you need it.
Understanding the Scope of Your Authority
Your power is limited to what the document says. A financial power of attorney lets you handle money and property — pay bills, manage investments, sell real estate, file taxes. 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 documents cover both; others cover only one.
Within each category, the principal can be very broad or very specific. They might give you power over all financial accounts, or only a single bank account. They might let you make any medical decision, or only decisions about life support. Read the document carefully and ask the principal to clarify anything unclear. If the document does not mention something, you do not have authority over it.
The principal can also set conditions or restrictions. For example, they might say you can only spend money on their medical care, or that you must consult with another family member before selling property. These limits are binding on you. If you violate them, you can be held legally responsible.
When Your Authority Begins and Ends
A durable power of attorney stays in effect even if the principal becomes mentally incapacitated — this is the most common type for long-term planning. A non-durable power of attorney ends automatically if the principal loses mental capacity. Some documents are springing, meaning they only take effect when a specific event happens (usually when a doctor confirms the principal is incapacitated). Ask the principal which type they want.
Your authority begins the moment the document is signed and notarized, unless it is a springing power of attorney. You can start acting when ready, but most institutions will not recognize your authority until you show them a certified copy of the document. Some banks and hospitals have their own power of attorney forms and may ask the principal to sign those instead of accepting your document.
The principal can revoke (cancel) the power of attorney at any time while they are mentally capable. They do this by signing a revocation document, usually notarized, and giving it to you and anyone else who has a copy. Once revoked, you have no authority. If the principal dies, the power of attorney ends automatically — your role is over, and the principal's will (if they have one) or state law determines what happens next.
Your Legal Duties as an Agent
Once you accept the role, you have a legal obligation called a fiduciary duty. This means you must act honestly, in good faith, and in the principal's best interest — not your own. You cannot use the principal's money or property for yourself, even if you think they would not mind. You cannot make decisions that benefit you at the principal's expense. You must keep records of everything you do.
If you make a mistake or act carelessly, the principal (or their family after they die) can sue you for damages. If you steal or deliberately misuse the principal's assets, you can face criminal charges. The law takes this seriously because the principal is trusting you with their money, property, and sometimes their life.
Keep a written record of every transaction you make on the principal's behalf — dates, amounts, what the money was for, and who you paid. Save receipts and bank statements. If the principal asks for an accounting, you must be able to show exactly what you did. Some states require you to file an annual accounting with the court if the principal is incapacitated.
When to Work with an Attorney
You do not need an attorney to become a power of attorney, but it is often a good idea for the principal to consult one before signing. An attorney can make sure the document is valid in your state, covers what the principal actually wants, and is signed the right way. This costs money upfront but prevents problems later.
You might also want to talk to an attorney if the principal's situation is complicated — if they have significant assets, a blended family, or ongoing medical issues. An attorney can explain your duties and help you understand what you can and cannot do. If you are unsure about a decision, asking an attorney is better than guessing and getting it wrong.
If the principal becomes incapacitated and there is a dispute about whether the power of attorney is valid, or if family members disagree about your decisions, you may need an attorney to defend yourself. Some of these costs can come from the principal's assets, but not all. Ask an attorney about this before problems arise.
Frequently Asked Questions
Can I become power of attorney for someone without their knowledge?
No. The principal must choose you and sign the document while they are mentally capable. If someone signs a power of attorney document without understanding what it is, or if someone forges their signature, the document is invalid and you have no authority. Forging a power of attorney is a crime.
Do I get paid for being a power of attorney?
Not automatically. The principal can decide to pay you a fee or reimburse your expenses, and they can write this into the document. If they do not, you are not may have access to to payment unless you are a professional (like an attorney or accountant) and you have a separate agreement. Family members often serve without payment.
What happens if I disagree with the principal's instructions?
You must follow the principal's instructions as written in the document, even if you think they are unwise. If you cannot do what they ask, you should resign and let an alternate agent take over. You cannot override the principal's wishes because you think you know better.
Can two people be power of attorney at the same time?
Yes, if the principal names co-agents. They can require you to act together (both must agree on every decision) or separately (either of you can act alone). The document will say which. Acting together takes longer but provides more oversight; acting separately is faster but riskier if one agent is dishonest.
What if the principal is already incapacitated and never signed a power of attorney?
You cannot become power of attorney after the principal loses mental capacity. Instead, a family member or interested person must ask a court to appoint a guardian or conservator. This is more expensive and time-consuming than a power of attorney, and the court, not the principal, decides who gets the role.