- Consider whether you want the POA to be “general” or “special”/ “limited.” You can grant a general power of attorney to one agent who can handle all of your matters, but you may want to grant separate powers of attorneys to different people for different purposes. For example, you might grant a power of attorney to your aunt to make decisions regarding your children and a separate one to your brother to handle financial matters such as managing your bank account or selling your car.
- Consider whether you want the POA to take effect immediately, or to become effective at some point in the future (a “springing” POA).
- Be careful in choosing an agent, especially if he or she will have access to your bank account. You should consider the following criteria:
- A person who resides in the same state where the POA will be used, since different states may have different requirements for writing a valid POA;
- A person who can be trusted to act wisely and in accordance with your wishes;
- A person willing to expend the time and effort necessary to manage your financial assets;
- A person who is comfortable dealing with banks and other financial institutions and who has a basic understanding of financial issues; and
- A person who has the necessary documentation to be in the United States legally or who will not otherwise be subject to detention or deportation in the near future, if possible.
- Make a list of all of the financial matters you would need an agent to help you handle.
- Write the document authorizing the power of attorney. Consider the following when writing it:
- Determine how long the power of attorney should last. Different states have different rules on how long POAs last if it is not explicitly stated in the document, so you should make sure to make your intentions clear;
- Try to provide as many details about the assets as possible. For example, list the names of the banks, the account numbers, the car registration numbers and the locations of assets; and
- Find out the legal requirements for a power of attorney in your state. If you have already left the U.S., a power of attorney can be drafted from abroad; however, this may require an authentication process depending on which country it is drafted in.
- Give the original power of attorney to the agent you have chosen (perhaps several signed copies). Keep a copy of your records.
- Circulate the POA to all third parties who you think would need to rely on it. This is to provide notice to those who will be impacted by the POA. Keep a list of the parties to whom the POA was circulated, as any change to or cancellation of the POA would need to be circulated to them.
- Ask the agent to keep clear records of all the actions he or she takes as your agent under the power of attorney. If another person refuses to accept your agent’s power of attorney, contact a lawyer.
- When making any changes to or cancelling a POA, make sure you use certified mail or some other method that provides a record of receipt.
