The Basic Steps to Designate a Power of Attorney
To designate a power of attorney, you write a document naming someone to act on your behalf, sign it in front of a notary public, and keep copies in a safe place. The document itself is usually one to three pages—you do not need a lawyer, though some people choose to hire one. The person you name (called your agent or attorney-in-fact) can begin using the document as soon as you sign it, unless you specify a later date.
The exact form and requirements vary by state. Some states have a standard form you can read and fill in; others let you write your own as long as it includes certain language. A few states require the document to be notarized; most do not, though notarization makes it easier for banks and other institutions to accept it. You do not file the document with any government office—you keep it yourself and give copies to the people who need to honor it.
Key Takeaways
- You can write a power of attorney document yourself or use your state's standard form, and you do not need a lawyer unless your situation is complex.
- The document must be signed and dated, and in most states notarized, before your agent can use it.
- You choose what powers to give your agent—financial, medical, or both—and can limit those powers to specific accounts or decisions.
- Your agent's authority ends when you die, so a power of attorney is different from a will and does not replace one.
- You can revoke the document at any time by writing a revocation letter, signing it, and notarizing it.
Decide What Type of Power of Attorney You Need
The first choice is whether you want your agent to handle financial matters, medical decisions, 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 (also called a healthcare proxy or medical power of attorney) lets your agent make medical decisions if you cannot. Some people create both documents at the same time.
You also need to decide whether the power of attorney is durable or non-durable. A durable power of attorney stays in effect even if you become mentally incapacitated; a non-durable one ends if you lose capacity. In most cases, you want durable—that is the whole point of naming someone ahead of time. The document will say "This power of attorney shall not be affected by the principal's subsequent incapacity" or similar language.
Finally, decide whether the power of attorney is when ready or springing. An when ready power of attorney takes effect as soon as you sign it. A springing power of attorney takes effect only when a specific event happens—usually when a doctor certifies that you are incapacitated. Springing powers are less common because they create delays and paperwork when your agent needs to act quickly.
Get Your State's Form or Write Your Own Document
Start by searching "[your state] power of attorney form" or visiting your state bar association's website. Many states provide a free standard form on the secretary of state's website or through the state legislature. Using your state's form is the easiest route because banks and hospitals already recognize it. If your state does not have a standard form, you can read a template from a legal document site, customize it for your state, or write one from scratch if you understand the legal language required.
The document must include your name and address, your agent's name and address, a clear statement of what powers you are granting, your signature, the date, and (in most states) a notary's signature. If you are creating a healthcare power of attorney, include language about organ donation, life support, and end-of-life care if those are important to you. Read the entire document before signing—do not skip sections or leave blanks.
If your situation is straightforward—you want one trusted person to handle your finances or medical decisions—a standard form works fine. If you have a complex estate, multiple properties in different states, or specific instructions about how your agent should act, consider hiring a lawyer. An attorney can also make sure your document works together with your will and any trusts you have created.
Choose Your Agent and Tell Them First
Your agent should be someone you trust completely, because they will have broad power to act on your behalf. Many people name a spouse, adult child, or close friend. You can name more than one agent, but this creates complications—decide whether they must act together or can act separately. You can also name alternate agents who step in if your first choice is unwilling or unable to serve.
Before you sign the document, talk to the person you want to name. Explain what the power of attorney does, what decisions they might have to make, and whether you have any instructions for how they should use it. Some people write a separate letter of instruction explaining their wishes about money, medical care, or other matters. Your agent needs to understand the responsibility and agree to take it on.
Sign and Notarize the Document
Sign the document in front of a notary public. Most states require the notary's signature and seal for the power of attorney to be valid, even if the law does not technically require notarization—banks and hospitals will ask for it. You do not need witnesses, though some people include them for extra proof. Do not sign a blank document or let someone else sign for you.
Find a notary at your bank, a UPS store, a law office, or online through the National Notary Association's search tool. Bring a photo ID. The notary will watch you sign, verify your identity, and add their signature and seal. The cost is usually five to fifteen dollars. Make several copies of the signed, notarized document—keep one in a safe place at home, give one to your agent, and give one to your doctor or bank if they ask.
Give Copies to the People Who Need Them
Your agent needs a copy to use the document. Give copies to your bank, investment firm, and insurance company if you want them to honor the power of attorney without delay. Some institutions have their own power of attorney forms they prefer; ask ahead of time. If you created a healthcare power of attorney, give a copy to your doctor, your hospital, and any specialists you see regularly.
You do not have to file the document with any government office or court. It becomes valid when you sign and notarize it. However, if you own real estate in another state, you may need to record the power of attorney in that state's land records office—ask a local lawyer or title company whether this is necessary.
Revoke or Update the Document When Your Circumstances Change
You can revoke a power of attorney at any time by writing a revocation letter, signing it, having it notarized, and giving copies to your agent and to any institutions that have a copy of the original document. You do not need the agent's permission. If you want to change who your agent is or what powers they have, create a new power of attorney document and revoke the old one in writing.
Review your power of attorney every few years, especially if your agent's circumstances change, if your relationship with them changes, or if you move to a new state. Some states require you to renew a power of attorney every five or seven years; check your state's rules. If you marry, divorce, or have a major change in your finances or health, that is a good time to update the document.
Frequently Asked Questions
Do I need a lawyer to create a power of attorney?
No. You can use your state's standard form and sign it yourself in front of a notary. A lawyer is helpful if your estate is complex, you own property in multiple states, or you want to coordinate the power of attorney with a will or trust. Many lawyers charge $200 to $500 to prepare a power of attorney.
Can I name more than one person as my agent?
Yes. You can name co-agents who must act together, or you can name them to act separately. You can also name alternate agents who take over if your first choice cannot serve. Be clear in the document about how multiple agents should work together.
What happens to the power of attorney when I die?
The power of attorney ends when ready when you die. Your agent cannot use it after that point. That is why you also need a will or trust to say what happens to your property after death. The power of attorney only covers decisions while you are alive.
Can my agent use the power of attorney to change my will?
No. A power of attorney does not give your agent the right to change your will, create a new will, or make decisions about what happens to your property after you die. Your agent can only act on the specific powers you listed in the document.
What if my agent misuses the power of attorney?
You can revoke the document when ready by writing a revocation letter and notarizing it. If your agent has already taken money or property, you can sue them to recover it. Some states allow you to report financial abuse to the adult protective services office or the police.