Advance planning for possible future incapacity may include a durable power of attorney to authorize a designated person to handle legal, tax and financial matters for you. Such a power can be general, permitting the "attorney-in-fact" (also known as the "agent") to handle all financial matters, or it may be limited in any way the grantor of the power (called the "principal") wishes. A "durable" power of attorney expressly survives the future incapacity of the grantor, and may be structured to only take effect in the event of such incapacity. It is revocable, and is effective only during the principal's lifetime.

A properly drafted POA can eliminate the need for costly and time-consuming court proceedings to appoint a guardian in the event you become incapacitated. It allows you to choose who can manage your affairs—not the court. An agent under a POA may be authorized to, among others:

Pay bills and manage bank accounts

Handle tax matters, insurance and government benefits

Manage investments and real estate

Access safe deposit boxes

Potential Risks of a Power of Attorney:

Misuse can cause serious financial harm. Choose someone you trust as agent.

Before you sign, read the POA and understand every power granted—some allow access to all of your assets.

Be cautious with gifting powers—they can affect taxes and eligibility for benefits.

Keep in mind that allowing changes to beneficiary designations can interfere with your estate plan.

Financial institutions may require specific statutory language before they will honor a POA. Refer to N.J.S.A. 46:2B-11 for specific requirements.

A Power of Attorney Does Not:

Authorize medical decisions.

Continue after your death.

Replace a Last Will and Testament or control estate distribution.

Seek Legal Advice

Because a POA carries legal and financial implications, you should consult an attorney before signing. The Surrogate’s Court cannot prepare POA documents or provide legal advice.