How to Get Power of Attorney

Have you ever wondered what happens if you're suddenly unable to make decisions on your own? If you're critically ill, incapacitated, or otherwise unable to manage financial, medical, or legal affairs, having power of attorney (POA) documents can help designated individuals take critical actions on your behalf.

Without a POA, your loved ones may face significant legal challenges and delays when trying to manage your personal and financial matters. Establishing a power of attorney before it’s needed can help ensure smooth, consistent control of your affairs.

This comprehensive guide explains the roles and responsibilities of a POA, the different types of POAs to consider, and how to get a power of attorney. We’ll also offer practical advice for submitting and safely storing POA documents and discuss whether you can get a POA without consent.

What Is a Power of Attorney?

A power of attorney is a legal document that grants a designated person the authority to act on behalf of another person in managing their financial, medical, or legal matters.^[1]

There are two key parties involved in a POA:

1. Principal: The individual who creates the POA and grants authority to the agent.
2. Agent (or Attorney-in-Fact): The person designated to act on behalf of the principal, making decisions and handling tasks as specified in the POA document.

Depending on the type of POA, the agent may have varying levels of authority, from handling specific transactions to managing all aspects of the principal's affairs.

The Role and Responsibilities of a POA

The individual designated as the agent or attorney-in-fact is responsible for acting in the principal's best interest. They are expected to make decisions and take actions in the same manner as the principal would if capable. Agents must always act within the boundaries of the authority granted by the document.

The decisions and actions an agent can make vary based on the type of POA and the specific instructions it contains. Some common examples include:

• Paying monthly bills and managing the household budget.
• Deciding on medical treatments or interventions in case of incapacitation.
• Selling a property to cover healthcare expenses.
• Signing documents to refinance a mortgage.

To ensure transparency and accountability, agents should keep accurate records of all transactions and decisions made on behalf of the principal.

Why Is Having a Power of Attorney Important?

Establishing a POA is an important step in the estate planning process. It provides several key benefits for individuals and their loved ones. 

Immediate Decision-Making Capabilities

A POA allows you to specify who will make decisions on your behalf and how those decisions should be made. In emergencies, having a POA in place allows your agent to act quickly. In some cases, this could ensure timely medical treatments or help prevent financial losses and other complications.

Reduced Mental and Emotional Stress

Without a POA, your family members might face significant stress and uncertainty as they attempt to manage your medical care or finances. Designating a trusted agent and clarifying your wishes relieves loved ones of the burden of making difficult decisions without guidance. This may help maintain family harmony and reduce the potential for conflict during challenging times.

Avoiding Court-Appointed Conservatorships

If you become incapacitated without a POA, the court may need to appoint a conservator or guardian to manage your affairs. This process can be time-consuming and costly. The courts may also appoint an individual or entity who does not fully understand or respect your preferences. A POA obligates a trusted person in charge of your affairs to make decisions according to your wishes.

5 Types of Power of Attorney

The scope of a power of attorney can be broad or limited, depending on your needs. There are several different types of POAs, each catering to specific situations and requirements.^[2]

1. Durable Power of Attorney

A durable power of attorney grants the agent the ability to manage a wide range of financial and medical affairs. This document takes effect immediately upon signing and does not expire. Unlike some other types of POA, a durable power of attorney remains in effect even if the principal becomes incapacitated.   

2. Non-Durable Power of Attorney

A non-durable power of attorney is effective for a limited time, as specified within the document. For example, the POA may expire six months from the date of execution or after a specific transaction is completed.

3. Springing Power of Attorney

A springing power of attorney becomes effective only upon the occurrence of a specified event, which is defined within the document. Common triggering events include the principal becoming physically disabled, being declared incapacitated by a doctor, or reaching a certain age.

4. Medical Power of Attorney

A medical power of attorney, also known as a healthcare power of attorney, allows the agent to make healthcare decisions on behalf of the principal if they are unable to do so. It also explains the principal’s wishes and may give specific instructions regarding medical treatments, healthcare providers, end-of-life care, organ donation, and autopsy authorization.

5. Financial Power of Attorney

A financial power of attorney grants the agent authority to manage the principal's financial matters. This may include handling bank accounts, investments, and real estate transactions. The document allows the agent to pay bills, manage investments, file taxes, and oversee other financial responsibilities as outlined in the POA document.

How To Provide a Power of Attorney  

The process of establishing a power of attorney (POA) can vary based on the type of POA and state-specific regulations. However, the steps are generally the same.  

Step 1: Determine the Scope of Your POA

First, you’ll need to determine the type of POA that is appropriate for your needs. Consider which aspects of your life you want an agent to handle and the circumstances under which you want to grant authority.

• General POA: Covers a broad range of decisions and legal actions.
• Limited POA: Restricts authority to specific types of affairs (e.g., financial or legal POA).

Step 2: Choose the Duration of Your POA

Next, determine when your POA goes into effect and how long it remains in force. Options include:

• Durable: Does not expire.*
• Non-Durable: Effective for a limited time.
• Springing: Effective only when an event occurs. 

*Note: A POA can only be used for living clients. It no longer applies if the principal dies.

Step 3: Decide on Authority Granted

You can specify the exact powers to grant the agent during the document drafting process. While some POA documents grant broad authority to handle all affairs, others detail specific actions agents can and cannot take. For example, a POA may specifically exclude actions such as:

• Making gifts or transfers: Prohibits the agent from gifting or transferring your assets to others.
• Changing beneficiaries: Restricts the agent from altering beneficiaries on insurance policies or retirement accounts.
• Making major financial decisions: Limits the agent's ability to make large financial decisions without your prior approval.
• Making specific medical decisions: Specifies particular treatments or procedures the agent cannot authorize.

A POA that is broad in scope provides flexibility, allowing the agent to handle a wide range of tasks without needing additional documents. This can be particularly useful in emergency situations where immediate decisions are required. However, adding restrictions may prevent misunderstandings or potential misuse of power. An estate planning attorney can help you design a document that meets your specific needs.

Step 4: Complete the POA Documentation

You can draft POA documents with assistance from an estate planning attorney or online legal service. If you plan to file the documents on your own, ensure all forms are filled out completely and accurately, and don’t forget to verify state-specific requirements. For example, some states require signature notarization or multiple witnesses to make the document legally binding.

Step 5: Copy, Store, and Distribute POA Forms

After completing and signing the POA forms, make several copies. Store the original document in a safe place, such as a fireproof safe or safety deposit box. Distribute copies to your agent, alternate agents, and any relevant institutions, such as your bank or healthcare provider. This will help ensure your POA can act quickly if needed.

Best Practices for Submitting POA Documents

When a situation arises that requires the use of a POA document, following best practices may help avoid delays in taking any required action. As a principal, you can prevent complications by ensuring your POA is up to date, legally binding in your state, and easily accessible to the people who need it.

The process of submitting a POA document varies depending on the institutions involved and the actions you’re trying to take. In most cases, these are the steps to follow:

1. Gather the necessary documents: Obtain the original POA document and several certified copies. 
2. Contact the institution: Call or visit the institution (e.g., bank, healthcare provider) where the principal holds accounts or needs services. Explain that you are the agent under a POA and inquire about their specific submission requirements. Ask for a checklist of required documents and forms.
3. Submit documentation: Carefully complete all required forms and submit them along with the necessary documentation. If submitting by mail or online, use secure methods to ensure the documents are received safely. When providing items in person, request a receipt or submission confirmation.
4. Maintain detailed records: Document all communications with the institution, including dates, names of representatives spoken to, and any instructions given. Store copies of all submitted documents, forms, and proof of submission in a secure location.
5. Follow up: Regularly check with the institution to confirm the POA is processed in a timely manner. This will help ensure you’re granted the access needed to effectively manage the principal’s affairs.

Keep in mind that processing POA documents can take time. Be patient yet persistent in following up with the institution. Ensure the institution has your current contact information in case they need to reach you for additional information or verification. If you encounter resistance or delays from an institution, consider seeking legal advice. An attorney can help clarify your rights and ensure compliance with legal standards.

Can You Get Power of Attorney Without Consent?

To establish a POA, the principal must give explicit consent, willingly and knowingly granting authority to the agent. At the time the document is executed, the principal must:

• Voluntarily agree to the POA without any coercion or undue influence.
• Understand the scope of the powers they are granting to the agent.
• Sign the POA document willingly, typically in the presence of a notary or witnesses, depending on state requirements.

If the principal is incapacitated and unable to provide consent, it is not possible to establish a POA. However, alternatives such as conservatorship or guardianship may allow another party to manage their affairs.

A conservatorship is a court-appointed arrangement where a judge assigns a conservator to manage an incapacitated individual's financial and/or personal affairs. The conservator has the legal authority to make decisions on behalf of the person, similar to a POA. However, the process involves a formal court proceeding, and the conservator is subject to ongoing court supervision.

Guardianship is similar to conservatorship but typically refers to the management of personal and healthcare decisions rather than financial matters. A guardian is appointed by the court to take care of the incapacitated individual’s well-being, including healthcare and living arrangements. Like conservatorship, guardianship requires court approval and oversight.

Using Your POA With Confidence

A POA helps ensure a trusted individual can handle your affairs when you’re unable to do so. By defining the scope and duration of your POA, you can control the authority granted by the document, allowing for flexibility while also protecting your interests.  

By taking the necessary steps to establish a POA and ensure it's legally binding, you can prevent legal complications and stress during critical times. It’s also important to keep your POA documents in a safe place and provide copies to each agent.

Whether you're a principal or an agent, PNC Bank’s Document and Signature Services makes submitting a POA as smooth as possible. Contact us today to learn how our team can assist with your POA needs.