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Power of Attorney

What Is A Power of Attorney?

A power of attorney is a legal document that grants an agent, or attorney-in-fact, decision-making authority. The principal is the person granting authority, and the agent is the person accepting it. The agent does not actually need to be an attorney — an individual the principal trusts.

  1. Select an agent. First, you must select a trusted person to be your agent. You may also select a second agent to fill in if the first agent can no longer do so. Agents have great responsibility, so selecting someone you trust is critical.
  2. Determine the power of attorney type and scope. Do you want a financial power of attorney or a healthcare power of attorney? Do you want to give broad authority to your agent, or do you want to enumerate specific powers more limited in scope? If you want an agent to decide on both finances and healthcare, you must have two power of attorney documents; under Maryland law, a single document purporting to grant both is not legally valid.
  3. Create a power of attorney document. Any document that grants authority to another person to act on your behalf can be a power of attorney. However, Maryland has created a specific power of attorney, called a Statutory Form Limited Power of Attorney, and has a template for use. An online service provider can help you create the power of attorney. In the document, the principal should be specific about what kind of authority the power of attorney grants.
  4. Execute the power of attorney. To finalize the power of attorney, the principal must sign the document in front of a notary public and two adult witnesses. The witnesses must also sign the document in front of the principal. Unless otherwise noted, the power of attorney immediately takes effect upon execution.

A power of attorney grants an agent or attorney-in-fact the authority to decide for the principal. It can be a broad, or general, power of attorney, or a limited power of attorney, which permits the agent to make only certain kinds of decisions, manage specific accounts, or carry out transactions. Maryland's Office of the Attorney General provides a template for the limited power of attorney.