Under certain circumstances, you might have to designate another person to act on your behalf when it is about legal matters. For this, you need a power of attorney letter. This is an official document that you as the Principal will complete to appoint another person to act on your behalf. This person is the “Attorney-in-Fact” or the “Agent.”
Contents
Power of Attorney Letters
What is a power of attorney letter?
A power of attorney is an official document that bestows the power to make decisions and act on behalf of another person in accordance with the terms written in the letter. Typically, the person granted such a power is the “Agent.”
The activities that the Agent will undertake may include property dealings, monetary transactions, signing checks, and more. As long as it’s written in the power of attorney letter sample, the Agent can do it.
Power Of Attorney Letter Samples
What do I write in a letter of power of attorney?
A power of attorney letter bestows the Agent with powers to act over various transactions. Generally, the main elements in an example of power of attorney letter include:
- Your name, address, and signature as the principal.
- The name, address, and signature of your Agent.
- The activities and properties under the Agent’s authority.
- The start and termination dates of the Agent’s powers.
- Any compensation you will give to the Agent.
- The name, address, and signature of the person who witnesses the signing.
How to write a power of attorney letter?
Although you can grant a person a power of authority to act on your behalf through a power of attorney letter, it doesn’t take away your power to act or decide for yourself. As a matter of fact, should there be a disagreement between you and your Agent, you still make the final decision.
If you intend to write a power of attorney authorization letter, you should consider seeking legal guidance from a lawyer to save you a lot of time and effort. You can also write the letter on your own by following these steps:
- Come up with a draft
The first step is to make a list of the special powers you will assign to your Agent. Because such special powers should be very precise, you should explicitly indicate the accounts, properties, and transactions that your Agent will have authority over. - Make decisions about springing powers
A springing power means it’s conditional. The Agent cannot exercise these powers until a specific event or condition has gotten satisfied. The Agent can’t act on your behalf legally regarding a springing power until the condition or event occurs.
This type of power doesn’t have to include a clause for this power but without it, then your letter becomes enforceable after you affix your signature. - Choose your Agent and a Successor Agent
Assigning your Agent is perhaps the most significant step when writing this letter. The Agent you choose should be a person you trust. It’s also recommended to choose a Successor Agent, in case something happens to your first choice. - Add the expiration date
Your letter should explicitly mention that your Agent’s authority only lasts for a specific amount of time. However, if your intent is for the letter to last for as long as you’re alive, you can make a Durable Power of Attorney.
This remains in effect even if you become incapacitated. No matter which type of letter you choose, remember that this authority terminates when you die. - Finalize your letter
After you have gathered all the information you need, you can now finalize your letter. Use non-ambiguous, clear language when outlining the details in the document. Include in your letter your complete name, the complete name of your Agent, and the complete name of your Successor Agent. Also, include the date when you wrote the letter.
Examples Of Power Of Attorney Letter
Obtaining the document
Nowadays, it is quite easy to obtain a power of attorney letter. You only have to decide the type of form that best suits your requirements. With today’s resources, creating this letter no longer requires you to hire an expensive lawyer to make a draft.
You can either download a free template or look at a power of attorney letter sample for reference. Here are the steps to take for obtaining this document:
- Understand what you need
For this, you need to research the types of forms to get a better understanding of the best form to suit your needs. The most common of these forms is the Durable Power of Attorney used for financial matters. This allows your Agent to handle business-related or monetary matters as needed. - Choose your agent
Your Agent is also known as your Attorney-In-Fact. This is the person who makes decisions on your behalf. When choosing your agent, the most important qualities to consider are trust and accountability.
Just make sure that your Agent is always available, especially in times of duress, and will execute your wishes faithfully. It’s also recommended to list more than a single Agent in your letter. This ensures there will be a successor should your main Agent isn’t available when you need them. - Create the letter
The next thing you have to do is to compose the letter. Most POA forms are already provided by the State and you can easily fill them in using a PDF format.
Make sure that your Agent will be there at the time when you will up the form. The main reason for this is that you have to provide information about yourself and your Agent in the letter. - Sign the letter and execute it
It’s a requirement that the document should get signed in the presence of a Notary Public, witnesses or both. It is also recommended to check your state’s Signing Laws. Only after the document has been properly witnessed will it become eligible for use.
In the case of a Medical Power of Attorney, some hospitals make it a requirement to present the original document. It is, therefore, recommended that you give the original copy to your Agent. - Store the letter
It’s your responsibility as the Principal to properly store the letter in the event that you will need it. Your Agent should also have the original letter or a certified copy of it so that they can exercise their authority.
