A general power of attorney gives someone broad authority over your finances. Because the power is significant, choose your agent carefully and add safeguards.
Common powers
- Managing bank accounts and paying bills.
- Buying or selling property.
- Filing taxes.
- Handling insurance and benefits.
- Operating a business.
Durable or not
A standard general power of attorney ends if you become incapacitated. A durable power of attorney remains valid, which is often the point of the document. Check your state's wording requirements.
Risks and safeguards
- Choose a trustworthy agent and a backup.
- Limit powers if appropriate.
- Require accountings.
- Consider a springing power that starts only on incapacity, with the tradeoff of proof needed.
- Review accounts regularly.
How to make it valid
- Use your state's form or a reputable template.
- Sign before a notary and witnesses as required.
- Tell your bank and others, since some institutions have their own forms.
- Store the original safely.
- Revoke it in writing if you change agents.
Frequently asked questions
Can my agent give themselves gifts?
Only if the document allows and the law permits.
When does it end?
On death, revocation or the end date or event stated.