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Financial Power Of Attorney Form PDF Free Download
Durable Power Of Attorney
In accordance with Section 114 (page 23), the agent must act:
To principal’s expectations while performing in their best interest;
In good faith;
Only with the scope of authority within the power of attorney.
To act without a conflict of interest to be able to make decisions on behalf of the principal’s best interest;
To keep records of all receipts, disbursements, and transactions made on behalf of the principal;
To cooperate with any agent that has the power to make health care decisions for the principal; and;
In preserving the principal’s estate plan to the extent known by the agent, such as:
Maintaining the value of the principal’s property;
Upkeeping with the principal’s obligations for maintenance;
Minimizing their tax liability including income, estate, inheritance, generation-skipping transfer, and gift taxes; and Eligibility for any benefits under a statute or regulation.
The principal may grant the following standard financial powers to the agent in accordance with Section 301 (page 68):
Real property – The buying, selling, and leasing of real estate;
Tangible Personal Property – The selling or leasing of personal items;
Stocks and Bonds – Selling shares of stock or bonds;
Commodities and Options – Making transfers of financial items or derivatives;
Banks and Other Financial Institutions – To have complete control over bank accounts, personal or business;
Operation of Entity or Business – To make any kind of decision for a business or entity;
Insurance and Annuities – The option to cancel, upgrade, or redeem insurance or an annuity;
Estates, Trusts, or Other Beneficial Interests – To control the language of an estate, trust, or other entity that transfers to the principal’s beneficiaries after death;
Claims and Litigation – To decide on any current claims or outstanding litigation matters;
Personal and Family Maintenance – Deciding and budgeting the amount of money to pay for the principal and any family members being supported;
Benefits from Governmental Programs or Civil or Military Service – To make claims for any government benefit or subsidy;
Retirement Plans – To amend any retirement plan.;
Taxes – To file or amend taxes.
If the agent is deemed to be in violation of their duties to the principal, they must be subject to the penalties in accordance with Section 117 (page 30) of:
Restoring the value of the principal’s property to the extent of what it would have been if the violation had not occurred; and
Reimburse the principal or their successors in interest for the attorney’s fees and other costs related to obtaining a judgment against the agent.
The agent’s duties can be terminated in any of the following ways (Section 301 (page 71):
Death of the principal;
A revocation form authorized by the principal;
The occurrence of a termination event;
The purpose of the power to be accomplished or completed;
If married and the spouse is the agent, a court action is filed to end the marriage unless specific language exists in the power of attorney allowing such legal action without terminating the document.
How to Get Durable Power of Attorney?
In order to have someone else be able to represent one’s financial best interests, they will need the following:
- A durable power of attorney document;
- Someone that can be trusted; and
- A notary public to witness the signatures.
Afterwards, the agent will be required to present the completed and signed power of attorney document whenever it’s being used.
Select Someone You Trust
When creating a power of attorney form, it’s important to think of someone that you trust to be the one to act as your financial representative (known as an “Agent” or “Attorney-in-Fact”).
This person should be responsible and know the inner workings of your financial goals and strategy in the chance you are no longer to speak for yourself and the person selected has to make decisions solely on their own.
You can also select, depending on the State, up to two (2) alternate/successor agents that are only allowed to come in and act if the original agent selected is not available.
Under a durable power of attorney, two (2) or three (3) agents working together is forbidden.
Only one (1) agent may be able to make decisions at a time with that agent having full control and decision-making powers as listed in the signed document.
Deciding the Agent’s Powers
The agent that is selected can have very simple and basic powers, such as having the right to pick up mail, to wide-ranging powers like having complete control over all the facets of the principal’s financial assets.
It’s recommended that if an agent is to have such powers they are the same person that is listed as a beneficiary in the principal’s last will and testament.
In that case, if the agent makes a financial move that hurts the principal’s overall value, it will also affect the agent.
Complete the Document
It’s important to go over and complete the document with the agent. There are other powers and selections that the agent should be made aware of such as:
- When the document begins;
- Fiduciary duties;
- If the agent can be paid or reimbursed for their duties;
- If the form remains in effect upon disability; and
- Any other special instructions for the agent.
After the document is complete, it’s common for the principal and agent also complete a Medical Power of Attorney.
A durable power of attorney is only for financial-related acts, while the medical also allows the agent to make health care decisions if the principal cannot speak for themselves.
Signing the Document
The document is required to be signed in accordance with State law which usually requires the principal and agent to sign in the presence of a notary public.
In some States, only witnesses are required and in others witnesses and a notary public are.
Signing Requirements – By State
- AL – Notary Public
- AK – Notary Public
- AZ – Notary Public and One (1) Witness
- AR – Notary Public
- CA – Notary Public or Two (2) Witnesses
- CO – Notary Public
- CT – Notary Public and Two (2) Witnesses
- DE – Notary Public and One (1) Witness
- FL – Notary Public and Two (2) Witnesses
- GA – Notary Public and One (1) Witness
- HI – Notary Public
- ID – Notary Public
- IL – Notary Public and One (1) Witness
- IN – Notary Public and One (1) Witness
- IA – Notary Public
- KS – Notary Public
- KY – Notary Public
- LA – No Statutory Requirement
- ME – Notary Public
- MD – Notary Public and Two (2) Witnesses
- MA – No Statutory Requirement
- MI – Notary Public or Two (2) Witnesses
- MN – Notary Public
- MS – No Statutory Requirement
- MO – Notary Public
- MT – Notary Public
- NE – Notary Public
- NV – Notary Public
- NH – Notary Public
- NJ – Notary Public
- NM – Notary Public
- NY – Notary Public
- NC – Notary Public
- ND – Notary Public
- OH – Notary Public
- OK – Two (2) Witnesses
- OR – No Statutory Requirement
- PA – Notary Public and Two (2) Witnesses
- RI – Notary Public or Two (2) Witnesses
- SC – Notary Public and Two (2) Witnesses
- SD – Principal Only
- TN – No Statutory Requirement
- TX – Notary Public
- UT – Notary Public
- VT – Notary Public and One (1) Witness
- VA – Notary Public
- WA – Notary Public or Two (2) Witnesses
- WV – Notary Public
- WI – Notary Public
- WY – Notary Public
Using the Form
In order for the agent to properly act in the presence of the principal, the form will be required to be presented in its original version or a clean copy.
Once validated, the agent will be authorized to make decisions with all the powers as if the principal is the one making the decisions.
If the agent is to sign legal documents on behalf of the principal, the agent would sign the principal’s name followed by the word “by” with the Agent’s signature followed by “acting as attorney-in-fact”.
|No. of Pages||5|
|PDF Size||1 MB|
Financial Power Of Attorney Form PDF Free Download