Power of Attorney

What is a Power of Attorney? - A Power of Attorney (POA) is a legal document that you (the principal) authorize an individual (agent/attorney in fact)—to act on your behalf. A POA can be:

General: broad authority over financial and legal matters

Limited: authority restricted to specific tasks or time periods

Durable: remains effective even if you become incapacitated

Springing: becomes effective only if you become incapacitated

Benefits of a Power of Attorney

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 honoring a POA. Refer to N.J.S.A. 46:2(B)(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.