Frequently Asked Questions

Question 1

What happens after I order my power of attorney document?

Accepted Answer

After you complete your purchase, we'll prepare your paperwork. It will typically be available for download within two to three business days. Then, you can review and sign your financial power of attorney.

Question 2

What is a financial power of attorney?

Accepted Answer

A financial power of attorney, sometimes called a power of attorney for finances, allows you to appoint a designated attorney-in-fact to transact personal business on your behalf. 
Often, a durable financial power of attorney agreement is part of a larger estate plan as just one of a number of estate planning documents.

Question 3

What does power of attorney give you authority over?

Accepted Answer

Financial power of attorney agreements grant someone the authority to make decisions around your finances and real estate when you're unable.

Question 4

What's an attorney-in-fact?

Accepted Answer

An attorney-in-fact, or “agent,” is a person who has been given authority to act on someone's behalf by a financial power of attorney document. They don't have to be a licensed attorney, but they do have to be over age 18.

Question 5

What does durable mean on a POA?

Accepted Answer

A durable POA continues even after someone can no longer make their own decisions, such as if they fall into a coma. A non-durable POA ends when the principal is incapacitated—for example, if the principal falls into a coma, the non-durable POA would end.

Question 6

What is the best form of power of attorney?

Accepted Answer

There are several forms of power of attorney. The best power of attorney is the one that works for your unique situation. Perhaps you want someone who could make decisions about a piece of property while you are out of the country for a month, just in case a storm hits. Perhaps you want to give your child’s grandparents access funds to pay for your child’s needs in case of an emergency. Whatever the reason, having a clear point of view about your needs can inform the best power of attorney form for you. LegalZoom's network of attorneys can also help advise you on the best form of power of attorney to meet your needs.

Question 7

Should I set limits on my power of attorney?

Accepted Answer

How much power the financial power of attorney has depends on your trust, comfort level, and needs. You might consider whether your agent could profit from completing financial transactions on your behalf, and restrict those, for example. Any powers you want to limit, for any reason, are at your discretion.

Question 8

What does power of attorney mean in regards to the IRS and form 2848?

Accepted Answer

Power of attorney before the IRS means you have given someone who is authorized to practice before the Internal Revenue Service the authority to represent you in tax matters—for example, they can file federal taxes for you. While an attorney-in-fact usually doesn't have to be a lawyer, an attorney-in-fact representing the principal before the Internal Revenue Service does have to be licensed to do so.

Question 9

Should multiple names of attorneys-in-fact be added to a power of attorney?

Accepted Answer

It’s a good idea to have a backup plan in case one of your attorneys-in-fact cannot act. 
Naming successor or alternate attorneys-in-fact is important—if you don't name someone in the document, the court will appoint one. In addition to naming successors, you can also name co-attorneys-in-fact. When one co-agent is unable to act, the remaining one typically takes over. Co-attorneys-in-fact usually need to agree on all decisions, which can be a good thing or a bad thing depending on the circumstances. 
Consulting with an attorney on these issues can be very helpful.

Question 10

Can I change a power of attorney after it has been signed, or notarized?

Accepted Answer

Yes. As long as you have the legal capacity to sign, you can amend a power of attorney, or revoke it and create a new one. Be sure to consult your state's rules for the signing requirements for an amendment or revocation. Our power of attorney packages include unlimited revisions for 30 days. If you’d like to revise after 30 days, you can purchase additional revisions or subscribe to our legal plan, which includes unlimited revisions for one year.

Question 11

What happens when the principal no longer has capacity?

Accepted Answer

If the principal no longer has the capacity, they can no longer amend or revoke the power of attorney agreement and most likely cannot make any financial decisions. The power of attorney itself will dictate who is next in line to take over the principal's financial affairs and when this can happen—for example, once there’s a doctor's letter proving the principal is incapacitated.

Question 12

What are the limits of a power of attorney?

Accepted Answer

The power of attorney ends if the principal dies, whether the agreement is durable or not. Some power of attorneys are already limited by design. For example, a power of attorney may grant an attorney-in-fact the power to make real estate decisions, but not grant them financial powers. Those decisions are made by the principal when the form is created.

Question 13

If I move to a new state, do I need a new power of attorney?

Accepted Answer

Most states recognize powers of attorney signed in other states. But it may be a good idea to get a new one when you move. Check with an attorney from our network to get advice on your specific situation.

Question 14

What's the difference between a healthcare POA, a medical POA, a healthcare proxy, and a living will?

Accepted Answer

These are all legal documents that deal with healthcare issues—not finances, as the financial power of attorney does.  
A healthcare POA and a medical POA both refer to documents where someone gives an attorney-in-fact the power to make medical decisions on their behalf should they become medically incapacitated and unable to make healthcare decisions. A healthcare proxy is another name for an attorney-in-fact.  
A living will is a document that typically includes your end-of-life health care wishes. At LegalZoom, our advance healthcare directive includes a living will and a healthcare POA.

Question 15

Do I have to file a signed power of attorney anywhere?

Accepted Answer

The answer depends on your state, and what the power of attorney covers. For example, if the power of attorney covers property, state law may require that power of attorney be filed with the local government office that oversees property in the county of the property mentioned in the power of attorney.