Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Dec 18, 2019

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

A power of attorney is a legal document granting a trusted individual the right and responsibility of caring for the assets and overall well-being of another person when they become incapacitated. While all power of attorney documents differ in their precise wording, there are some common provisions that you can use to guide your decisions.

Granting Authority

The first and most important provision in a power of attorney document grants the assigned person authority to act on your behalf. In general, this section will give the assigned person the right to act in the case of disability or legal incapacity. Typical examples of a disability prompting this provision include sudden strokes or degenerative diseases such as Alzheimer’s. In some cases, you may be unaware that you have reached a point of being too disabled to make your own decisions. When this happens, the court steps in and declares you legally incapacitated, triggering the power of attorney.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption

Powers Granted

While every power of attorney is drafted differently, there are some general trends in the powers that people grant in the power of attorney document. These examples include:

(1) Ability to collect and manage assets
(2) Buying and selling assets
(3) Borrowing money in your name
(4) Conducting regular business for you
(5) Filing your taxes
(6) Access to all safe deposit boxes
(7) Ability to appear in court on your behalf
(8) Ability to hire and fire agents such as attorneys and employees as necessary

Limits on Power

While it is unlikely that any person granted power of attorney would abuse their power, it is always prudent to place limits in the document to help them avoid any temptations. These limitations typically include:

(1) Execution of a will, codicil or will substitute
(2) Changing life insurance beneficiaries
(3) Making gifts on your behalf
(4) Removing property from a trust, causing it to become taxable
(5) Contriving a medical power of attorney

Substitute Agents

Another key component is to list at least two substitute agents in case the first agent is unable to serve. When listing agents, always include their full name and address. This gives the court a viable means of locating them.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption

Guardian

In case of severe incapacity, it may be necessary for a guardian to be named for you. A guardian is someone who lives with you and cares for your physical needs throughout the day. If you can, name two possible guardians and list their addresses. Remember that the guardian’s role is separate from the power of attorney’s role, so separate people should be named.

Additional Provisions

Additionally, you may also want to include specific terms for compensating the power of attorney agent. This ensures that agent clearly understands the amount they will receive for their time and effort.

If you had previously enacted any power of attorney documents, you must revoke them in this document. If possible, specifically list the previous documents by date so that any incidental remaining copies will be considered invalid.

Consulting an Attorney

Power of attorney documents are extremely complex to draft and often require provisions that you may not even realize are required. Each power of attorney authorization should be customized for the person for whom it is created; so, a generic power of attorney document may not be in your best interests. If you are considering drafting a power of attorney form, consult with an attorney.