How To Make Sure Your Power Of Attorney Is Legally Valid

A Power of Attorney (POA) is one of the most important legal documents you can create. It gives someone you trust—called your "agent" or "attorney-in-fact"—the authority to make financial, legal, or healthcare decisions on your behalf. But not all POAs are created equal. If your document isn’t properly prepared or executed, it may not be recognized when you need it most.
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In this guide, we’ll walk you through how to make sure your Power of Attorney is legally valid—so you can protect yourself, your assets, and your peace of mind.

What Is a Power of Attorney?
A Power of Attorney is a legal document that allows you (the principal) to appoint another person (the agent) to act on your behalf. There are several types, each serving a different purpose:

Common Types of POA:

• General POA – Grants broad powers over financial and legal matters.
• Limited (Special) POA – Grants authority for specific tasks or time periods.
• Durable POA – Remains valid if you become incapacitated.
• Medical (Healthcare) POA – Allows someone to make healthcare decisions if you're unable to.
• Springing POA – Becomes effective only when a specific event occurs (e.g., incapacity).

If a POA isn’t legally valid, banks, hospitals, or courts may reject it—causing delays or even requiring guardianship proceedings.


Steps to Ensure Your Power of Attorney Is Legally Valid
1. Understand Your State’s Requirements
Every state has its own laws governing how POAs must be created, signed, and executed.

• Use your state’s official form (many states provide standardized POA forms)
• Ensure the document meets local witnessing and notarization laws
• Confirm the types of POAs recognized in your state

Check with an estate planning attorney if you're unsure which laws apply.

2. Clearly Identify the Principal and Agent
Use full legal names, addresses, and contact information. Ambiguity can lead to disputes or rejection of the document.
Include:

• Your full legal name (the principal)
• Your agent’s full legal name
• A statement affirming the agent’s authority

You can name one or more alternate agents in case your primary choice is unavailable.

3. Define the Scope of Authority
Be specific about what your agent can and cannot do. Broad powers may be convenient, but they also carry risks.

Examples of powers to grant:

• Access and manage bank accounts
• Buy or sell property
• Make investment decisions
• Handle tax filings
• Make healthcare decisions (if healthcare POA)

Include language limiting certain actions, if needed (e.g., no gifting or no access to certain accounts).

4. Use the Right Legal Language
Use formal legal language that makes the document enforceable, such as:

• “This Power of Attorney shall remain in effect even upon the principal’s incapacity.” (for a durable POA)
• “This Power of Attorney shall take effect upon certification of incapacity by a licensed physician.” (for a springing POA)

Some institutions require specific phrasing, especially for financial transactions—consult your bank or advisor.

5. Include Proper Signatures and Witnesses
Most states require the principal to sign in front of:

• A notary public, and/or
• One or two uninterested adult witnesses

Tips:

• Witnesses cannot be your agent or someone who will benefit from your estate
• Sign in ink and date the document clearly
• Don’t use electronic signatures unless your state explicitly permits them for POAs

Make sure every signature is complete and legible—errors can invalidate the form.

6. Store and Distribute Copies Properly
A POA isn’t useful if no one knows it exists.

• Keep the original in a safe but accessible place
• Give copies to your agent(s), attorney, and relevant institutions (banks, doctors)
• Let your family or executor know where it’s stored

Some states or hospitals require the agent to present a certified copy before taking action.

7. Update the Document Periodically
Even if your circumstances haven’t changed, it's wise to review and update your POA every few years.
Reasons to update:

• Your agent becomes unavailable or untrustworthy
• Your health or financial situation changes
• State laws change
• You’ve moved to another state

Stale documents (10+ years old) may be questioned or rejected by financial institutions.


Bonus Tips to Avoid Problems

• Work with an attorney – Especially if your estate is complex or if you want custom terms
• Avoid DIY mistakes – Online forms are helpful, but not always state-compliant or personalized
• Communicate with your agent – Make sure they understand your wishes and responsibilities
• Consider a backup plan – Naming a successor agent ensures continuity if your primary can’t serve

Final Thoughts: Power of Attorney with Real Power
A Power of Attorney is a powerful tool—but only if it’s legally valid and up to date. Without one, your family may need to go through lengthy court procedures to manage your affairs if you become incapacitated.

Pro Tip: Don’t wait for an emergency. Create or review your POA today—and give yourself and your loved ones peace of mind for the future.

​At Dumon Financial Group, we are dedicated to providing our clients with comprehensive and affordable insurance policies. Our commitment extends to going the extra mile to address your specific needs. To learn more about how we can assist you, please contact our agency at 702-871-0777 or  CLICK HERE to request a free quote.

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.