Writing a Power of Attorney Letter (with Sample)
Use this sample power of attorney letter as a template for your formal letter.
Last updated on June 12, 2023
Power of attorney (POA) means a person, called the principal, chooses someone whom they trust, called the agent, to handle their affairs and make decisions if they are not in a position to do so themselves.
This can only legally be done if the principal has the requisite mental capacity to grant this power to another person. Once a person loses their mental faculties such as in an automobile accident or through a disease such as Alzheimer’s disease, they may no longer grant the power of attorney to another person.
There are many decisions a POA can be given the power to make such as the power to:
This can only legally be done if the principal has the requisite mental capacity to grant this power to another person. Once a person loses their mental faculties such as in an automobile accident or through a disease such as Alzheimer’s disease, they may no longer grant the power of attorney to another person.
There are many decisions a POA can be given the power to make such as the power to:
- Make gifts of money or property
- Make financial decisions such as buying or selling stock
- Make healthcare decisions such an emergency surgery for the principal
Even if a principal grants an agent the power of attorney over their affairs, they are still responsible for their affairs, and can revoke the POA at any time.
The main reasons it is recommended to designate a POA are:
The main reasons it is recommended to designate a POA are:
- If property is owned by more than one person
- If bank accounts have more than one name
- If brokerage accounts have more than one name
- If the principal is single and going on a trip
- If the principal will have major surgery
If a person dies, his or her property and money will be transferred to the benefactors of the will. However, if they become incapacitated, the joint owner will have very limited authority over the share of the joint property or account unless they have power of attorney.
Three Types of Power of Attorney
Durable – This type becomes effective as soon as it is signed and remains in effect unless it is canceled. It must clearly state that the agent has the power even if the principal becomes incapacitated.
Springing – This type begins when a specific event takes place and the principal becomes incapacitated. The designated moment of the springing or beginning of this POA should be clearly mentioned in the document.
Conventional – This type begins when it is signed and remains in effect until the principal becomes incapacitated. The document must clearly state that the principal wants their agent to make decisions for them if they are unable to do so for themselves.
A power of attorney letter is not really a letter in the conventional sense. It is a legal document that must have specific instructions. It can be put in formal, business letter format, if it has all of the legal requirements.
To be legal, the power of attorney letter must be signed by the principal, witnesses, a notary public or other official according to the laws of the state where the POA is written. The principal should not sign the document until they are in the presence of a notary public.
A POA could also be created for a specific transaction such as selling a business, and cancelled when that transaction is completed.
Here is a sample power of attorney letter. It may be kept by a lawyer, if the principal had legal help writing it. Otherwise it should be sent by certified mail. It should be noted that one sample may not be suitable for every jurisdiction including a county, city or state. The principal should make sure they are following the laws in their state.
Three Types of Power of Attorney
Durable – This type becomes effective as soon as it is signed and remains in effect unless it is canceled. It must clearly state that the agent has the power even if the principal becomes incapacitated.
Springing – This type begins when a specific event takes place and the principal becomes incapacitated. The designated moment of the springing or beginning of this POA should be clearly mentioned in the document.
Conventional – This type begins when it is signed and remains in effect until the principal becomes incapacitated. The document must clearly state that the principal wants their agent to make decisions for them if they are unable to do so for themselves.
A power of attorney letter is not really a letter in the conventional sense. It is a legal document that must have specific instructions. It can be put in formal, business letter format, if it has all of the legal requirements.
To be legal, the power of attorney letter must be signed by the principal, witnesses, a notary public or other official according to the laws of the state where the POA is written. The principal should not sign the document until they are in the presence of a notary public.
A POA could also be created for a specific transaction such as selling a business, and cancelled when that transaction is completed.
Here is a sample power of attorney letter. It may be kept by a lawyer, if the principal had legal help writing it. Otherwise it should be sent by certified mail. It should be noted that one sample may not be suitable for every jurisdiction including a county, city or state. The principal should make sure they are following the laws in their state.
Power of Attorney Letter Sample
I, Name of Principal, who currently resides at Address of Principal am of sound mind, do hereby name Name of Agent who currently resides at Address of Agent as my lawful and true attorney in fact, to act in my name and place to do and perform the following the following on my behalf.
Powers Are Listed Here
(The power to write checks on bank account, buy and sell property or stocks and whatever the principal chooses.)
The following property, interests or rights shall be subject to this Power of Attorney:
What the Agent Can Do Is Listed Here
(The assets that are subject to the agent’s authority such as property, bank accounts or stocks)
This Power of Attorney becomes effective on DATE.
This Power of Attorney will be in effect in the event that I should be declared incompetent, become disabled or incapacitated.
This legal Power of Attorney will terminate on DATE unless I have canceled it, which I may do at any time and in any manner.
The agent will be compensated for services listed in Power of Attorney as follows:
(If the Agent is to be paid for their services, it should be stated here)
This Power of Attorney is in accordance with the laws of the State of STATE.
In front of witnesses, I have signed this power of attorney document.
Principal’s Signature
DATE
Accepted and Agreed to by
Agent’s Signature
DATE Subscribed and sworn to before me on DATE
Notary Public’s Signature
By Andre Bradley
Frequently Asked Questions (FAQs)
Q: What is a Power of Attorney Letter?
Answer: A Power of Attorney Letter is a legal document that grants someone else the authority to act on your behalf in various matters. It allows the appointed individual, known as the attorney-in-fact or agent, to make decisions and take actions on your behalf, such as managing financial affairs, signing documents, or making healthcare decisions.
Q: How does a Power of Attorney Letter work?
Answer: When you create a Power of Attorney Letter, you are designating another person to act as your representative. The document specifies the scope of authority granted to the agent, whether it is limited to specific tasks or broad enough to encompass multiple areas. The Power of Attorney Letter remains in effect until you revoke it or become incapacitated, depending on the type of Power of Attorney you have chosen.
Q: Why would someone need a Power of Attorney Letter?
Answer: There are several situations where a Power of Attorney Letter can be beneficial. For example, if you are traveling abroad and need someone to handle your financial matters, you can grant them power of attorney. Similarly, if you are undergoing medical treatment and want someone to make healthcare decisions on your behalf, a Power of Attorney Letter can provide the necessary authority.
Q: What are the types of Power of Attorney Letters?
Answer: There are different types of Power of Attorney Letters to suit specific needs. A General Power of Attorney grants broad powers to the agent and remains in effect until revoked or you become incapacitated. A Limited Power of Attorney, on the other hand, grants authority for specific tasks or a defined period. A Durable Power of Attorney remains in effect even if you become incapacitated. Lastly, a Medical Power of Attorney grants the agent the authority to make healthcare decisions on your behalf.
Q: Can a Power of Attorney Letter be revoked?
Answer: Yes, a Power of Attorney Letter can be revoked at any time, as long as you are mentally competent. You can revoke it by creating a new Power of Attorney Letter that explicitly states the revocation, or by notifying your agent in writing. It's crucial to inform all relevant parties, such as financial institutions or healthcare providers, about the revocation to ensure they no longer recognize the authority of the agent.
Q: Are there any limitations to a Power of Attorney Letter?
Answer: Yes, there can be limitations to a Power of Attorney Letter based on your preferences. You can specify which powers are granted to the agent and which tasks they are not authorized to perform. Additionally, you can include conditions such as the Power of Attorney only taking effect if you become incapacitated. It's important to clearly outline any restrictions or limitations in the document to avoid any misunderstandings.
Q: Can a Power of Attorney Letter be used after death?
Answer: No, a Power of Attorney Letter becomes void upon the death of the person who granted it. After death, the authority to make decisions and handle affairs typically transfers to an executor or personal representative designated in the deceased person's will or appointed by the court. It is essential to create a separate estate plan, including a will and possibly a trust, to address post-death matters and distribution of assets.
Q: What happens if there is a dispute regarding a Power of Attorney Letter?
Answer: If there is a dispute regarding a Power of Attorney Letter, it is advisable to seek legal counsel. Resolving such disputes often involves presenting evidence, such as the original document, witness testimony, or medical assessments, to determine the validity of the Power of Attorney and the intentions of the grantor. The court may intervene to make a final decision based on the evidence and applicable laws.
Interesting Finds
I, Name of Principal, who currently resides at Address of Principal am of sound mind, do hereby name Name of Agent who currently resides at Address of Agent as my lawful and true attorney in fact, to act in my name and place to do and perform the following the following on my behalf.
Powers Are Listed Here
(The power to write checks on bank account, buy and sell property or stocks and whatever the principal chooses.)
The following property, interests or rights shall be subject to this Power of Attorney:
What the Agent Can Do Is Listed Here
(The assets that are subject to the agent’s authority such as property, bank accounts or stocks)
This Power of Attorney becomes effective on DATE.
This Power of Attorney will be in effect in the event that I should be declared incompetent, become disabled or incapacitated.
This legal Power of Attorney will terminate on DATE unless I have canceled it, which I may do at any time and in any manner.
The agent will be compensated for services listed in Power of Attorney as follows:
(If the Agent is to be paid for their services, it should be stated here)
This Power of Attorney is in accordance with the laws of the State of STATE.
In front of witnesses, I have signed this power of attorney document.
Principal’s Signature
DATE
Accepted and Agreed to by
Agent’s Signature
DATE Subscribed and sworn to before me on DATE
Notary Public’s Signature
By Andre Bradley
Frequently Asked Questions (FAQs)
Q: What is a Power of Attorney Letter?
Answer: A Power of Attorney Letter is a legal document that grants someone else the authority to act on your behalf in various matters. It allows the appointed individual, known as the attorney-in-fact or agent, to make decisions and take actions on your behalf, such as managing financial affairs, signing documents, or making healthcare decisions.
Q: How does a Power of Attorney Letter work?
Answer: When you create a Power of Attorney Letter, you are designating another person to act as your representative. The document specifies the scope of authority granted to the agent, whether it is limited to specific tasks or broad enough to encompass multiple areas. The Power of Attorney Letter remains in effect until you revoke it or become incapacitated, depending on the type of Power of Attorney you have chosen.
Q: Why would someone need a Power of Attorney Letter?
Answer: There are several situations where a Power of Attorney Letter can be beneficial. For example, if you are traveling abroad and need someone to handle your financial matters, you can grant them power of attorney. Similarly, if you are undergoing medical treatment and want someone to make healthcare decisions on your behalf, a Power of Attorney Letter can provide the necessary authority.
Q: What are the types of Power of Attorney Letters?
Answer: There are different types of Power of Attorney Letters to suit specific needs. A General Power of Attorney grants broad powers to the agent and remains in effect until revoked or you become incapacitated. A Limited Power of Attorney, on the other hand, grants authority for specific tasks or a defined period. A Durable Power of Attorney remains in effect even if you become incapacitated. Lastly, a Medical Power of Attorney grants the agent the authority to make healthcare decisions on your behalf.
Q: Can a Power of Attorney Letter be revoked?
Answer: Yes, a Power of Attorney Letter can be revoked at any time, as long as you are mentally competent. You can revoke it by creating a new Power of Attorney Letter that explicitly states the revocation, or by notifying your agent in writing. It's crucial to inform all relevant parties, such as financial institutions or healthcare providers, about the revocation to ensure they no longer recognize the authority of the agent.
Q: Are there any limitations to a Power of Attorney Letter?
Answer: Yes, there can be limitations to a Power of Attorney Letter based on your preferences. You can specify which powers are granted to the agent and which tasks they are not authorized to perform. Additionally, you can include conditions such as the Power of Attorney only taking effect if you become incapacitated. It's important to clearly outline any restrictions or limitations in the document to avoid any misunderstandings.
Q: Can a Power of Attorney Letter be used after death?
Answer: No, a Power of Attorney Letter becomes void upon the death of the person who granted it. After death, the authority to make decisions and handle affairs typically transfers to an executor or personal representative designated in the deceased person's will or appointed by the court. It is essential to create a separate estate plan, including a will and possibly a trust, to address post-death matters and distribution of assets.
Q: What happens if there is a dispute regarding a Power of Attorney Letter?
Answer: If there is a dispute regarding a Power of Attorney Letter, it is advisable to seek legal counsel. Resolving such disputes often involves presenting evidence, such as the original document, witness testimony, or medical assessments, to determine the validity of the Power of Attorney and the intentions of the grantor. The court may intervene to make a final decision based on the evidence and applicable laws.
Interesting Finds