Understanding Power of Attorney: Stay in Control While Ensuring Your Wishes Are Honored
Updated: Sep 6
Did you know?
Giving someone Power of Attorney does not necessarily mean giving up control over your life, finances, or decisions.
A Power of Attorney can be an important planning tool that allows someone you trust to act on your behalf when necessary. Depending on the document and the authority you grant, that person may be able to handle financial transactions, sign certain documents, manage property, or take care of other matters for you.
Whether you are planning for the future, preparing for an extended trip, helping an aging parent, heading off to college, or simply making sure someone can step in if needed, understanding how a Power of Attorney works can help you make informed decisions.
Important: Power of Attorney laws vary by state. This article focuses primarily on New Jersey and is provided for general educational purposes. Complete Notary Services is not a law firm and cannot provide legal advice, select a Power of Attorney for you, or prepare legal documents.
What Is a Power of Attorney?
A Power of Attorney (POA) is a legal document through which one person, generally called the principal, gives another person, often called the agent or attorney-in-fact, authority to act on the principal's behalf.
Despite the term attorney-in-fact, the person you appoint does not necessarily have to be an attorney.
The authority granted can be broad or very specific, depending upon the document. For example, a POA might authorize an agent to:
Access or manage certain financial accounts
Pay bills
Handle business or financial transactions
Manage property
Sign certain documents
Conduct specified real estate transactions
Handle a particular matter while the principal is unavailable
Exactly what an agent may or may not do depends upon the language of the Power of Attorney and applicable law.
💡 Did You Know?
A Power of Attorney is not just something to consider when you are older or seriously ill.
Someone may need another person to act for them because they are traveling, attending college away from home, serving in the military, recovering from surgery, temporarily unavailable, or simply planning ahead.
Who Is Who in a Power of Attorney?
POA terminology can sound more complicated than it really is.
Principal: The person who creates the Power of Attorney and grants authority to another person.
Agent or Attorney-in-Fact: The person authorized to act on behalf of the principal.
Choosing an agent is an important decision. Depending upon the powers granted, that individual may have significant authority over the principal's finances, property, or other affairs.
For questions about whom to appoint, which powers to grant, or what type of Power of Attorney is appropriate for your circumstances, you should speak with a qualified attorney.
Understanding Different Types of Power of Attorney
You may hear several different terms used when discussing Powers of Attorney. Some describe what authority is being granted, while others describe when that authority continues or becomes effective.
That distinction is important.
1. Financial Power of Attorney
A Financial Power of Attorney may authorize an agent to handle specified financial matters on behalf of the principal.
Depending upon the document, this might include managing bank accounts, paying bills, handling investments, dealing with certain tax or business matters, or managing property.
The precise authority comes from the document itself, so not every Financial Power of Attorney gives an agent the same powers.
2. Limited or Specific Power of Attorney
Sometimes a principal does not want to give someone broad authority.
A Limited or Specific Power of Attorney may authorize an agent to perform only a particular task or handle a particular transaction.
For example, someone who will be unavailable for a transaction might authorize another person to perform specifically identified acts on their behalf.
This can be useful when you want assistance with one defined matter without granting broader authority over your affairs.
3. Real Estate Power of Attorney
A Power of Attorney may grant an agent authority relating specifically to real estate.
Depending upon its language, the authority might involve buying, selling, managing, refinancing, or executing documents concerning real property.
Real estate transactions can involve additional legal and recording requirements. If a POA will be used for a real estate transaction, it is especially important to confirm the requirements with the attorney, title company, lender, or other professional handling the transaction before the document is signed or used.
4. General Power of Attorney
A General Power of Attorney typically gives an agent relatively broad authority to act for the principal in a range of matters.
Broad authority can be useful, but it can also carry significant consequences. Anyone considering a General Power of Attorney should understand exactly what authority the document grants.
5. Durable Power of Attorney
The word “durable” relates to what happens to the agent's authority if the principal later becomes incapacitated.
A Durable Power of Attorney is designed so that the authority granted to the agent can continue despite the principal's subsequent disability or incapacity, subject to applicable law and the terms of the document.
This distinction can be particularly important in incapacity and long-term planning.
What About a Health Care Power of Attorney?
This deserves its own section because health care decision-making is different from an ordinary financial Power of Attorney.
In New Jersey, a Proxy Directive, also called a Durable Power of Attorney for Health Care, allows you to appoint a health care representative to make health care decisions for you if you become unable to make those decisions yourself.
According to the New Jersey Department of Health, a health care representative does not take over your medical decision-making while you are still capable of making your own decisions.
Your representative's authority becomes relevant when you have been evaluated and determined to be unable to make your own health care decisions.
New Jersey also recognizes an Instruction Directive, commonly known as a Living Will, in which you can express your wishes concerning medical care and life-sustaining treatment.
👉 Helpful Resource: The New Jersey Department of Health provides information, FAQs, and forms for Advance Directives, including its Proxy Directive (Durable Power of Attorney for Health Care).
⚠️ Important New Jersey Distinction
A New Jersey Advance Directive for Health Care does not necessarily have to be notarized.
According to the New Jersey Department of Health, an individual may either have the advance directive notarized or sign and date it in front of two adult witnesses who also sign and date it.
The person appointed as the health care representative cannot serve as a witness.
Always follow the execution instructions for the particular document you are signing.
Does Giving Someone Power of Attorney Mean You Give Up Your Rights?
This is one of the biggest misconceptions surrounding Powers of Attorney.
Creating a POA does not, by itself, mean that someone else automatically takes over your life.
If you remain capable of handling your own affairs, the existence of a POA generally does not prevent you from continuing to act for yourself.
Think of it this way:
A Power of Attorney can give another person authority to act for you. It does not automatically transfer your entire decision-making authority to that person.
Health care is an especially good example. Under New Jersey's Proxy Directive system, your health care representative cannot make health care decisions for you while you remain able to make those decisions yourself.
If you have questions about how a particular POA affects your authority, when an agent's authority begins, or how that authority can be revoked, those are legal questions that should be addressed with an attorney.
Does a Power of Attorney Need to Be Notarized in New Jersey?
For a Power of Attorney governed by New Jersey's general POA statute, New Jersey law states that a Power of Attorney must be in writing, duly signed, and acknowledged in the manner prescribed by state law.
A New Jersey Notary Public is among the officers authorized to take an acknowledgment.
During an acknowledgment, the signer appears before the notarial officer and acknowledges that the document was executed as the signer's own act.
👉 Legal Reference: New Jersey Legislature, N.J.S.A. 46:2B-8.9, Formality
Remember, however, that different documents may have different execution requirements. A health care Proxy Directive, for example, follows the separate rules discussed above.
What Does the Notary Actually Do?
This is an important distinction.
A Notary Public does not create the Power of Attorney, choose the agent, determine what powers should be granted, or provide legal advice about whether the document is appropriate.
When performing a notarization, the notary performs the notarial act required by the document and applicable law. Depending upon the notarial act, this can include confirming the signer's identity, requiring the signer to personally appear, and completing the appropriate notarial certificate.
The notary's role is not to determine whether the Power of Attorney is legally sufficient for the principal's particular circumstances or whether a bank, title company, medical provider, government agency, or other third party will ultimately accept it.
Before Your Notary Appointment
If you already have a Power of Attorney prepared and need it notarized, a little preparation can make the appointment much easier.
Before the appointment:
Review the document. Make sure the document is complete and that you understand what you are signing. Any questions about the legal meaning or effect of the document should be directed to the attorney or other appropriate legal professional who prepared or provided it.
Check whether witnesses are required. Many Power of Attorney documents contain witness requirements in addition to notarization requirements. Carefully review the document and its signing instructions to determine whether witnesses are required, how many are needed, and who is permitted to serve.
As a best practice, when witnesses are required for a Power of Attorney, they should be independent, disinterested adults who have no financial or beneficial interest in the document or transaction. Ideally, a witness should:
Be at least 18 years old
Not be named as the agent or attorney-in-fact in the Power of Attorney
Not be a beneficiary or otherwise have a financial interest in the document or transaction
Not be related to the principal by blood, marriage, or adoption
Be able to personally observe the signing and fulfill any other requirements stated in the document
Important: Witness requirements can vary depending on the type of Power of Attorney, the document itself, the transaction involved, and where the document will be used. Always follow the instructions contained in the document and any requirements provided by the attorney, financial institution, title company, health care provider, or other receiving party.
Need Witnesses? If your Power of Attorney requires witnesses and you do not have appropriate witnesses available, ask when scheduling your appointment. Complete Notary Services may be able to coordinate independent witnesses for an additional fee and with advance notice.
Bring acceptable identification. The signer should have an original, acceptable form of identification available for the notarization.
Do not assume every signature needs to be notarized. A Power of Attorney may contain signatures for the principal, witnesses, an agent, or other parties. Not every signature necessarily requires notarization. Look for the notarial certificate and signing instructions, or confirm the requirements with the attorney or receiving party.
Ask about special requirements in advance. Real estate transactions, estate-planning documents, documents being used outside New Jersey, and documents intended for apostille or authentication may have additional execution or recording requirements.
When Might Someone Consider Having a Power of Attorney?
A Power of Attorney is not only for emergencies.
People may consider discussing a POA with their attorney as part of planning for:
🏥 Medical procedures or hospitalization: Someone may want a trusted person available to handle certain affairs during a period of recovery.
✈️ Extended travel: A person who will be outside the state or country may need someone to handle specific matters at home.
🎓 A child turning 18 or leaving for college: Once a child becomes a legal adult, parents no longer automatically have the same authority to handle matters for them simply because they are the parent.
🏡 Real estate transactions: Someone unable to attend a transaction personally may need to explore whether another person can be authorized to handle specified matters.
👵 Aging and long-term planning: A POA may be one component of a broader estate or incapacity plan.
💼 Business or financial responsibilities: Someone may need another trusted person to handle specified transactions during an absence or period of incapacity.
Frequently Asked Questions
Can my agent sign documents for me?
Potentially. It depends upon the authority granted in the Power of Attorney, the particular transaction, applicable law, and the requirements of the party receiving the document.
Does my agent have to be an attorney?
The term attorney-in-fact does not mean the agent must be a licensed attorney.
Can I still make my own decisions after signing a POA?
The existence of a POA does not automatically eliminate your ability to act for yourself. The effect of a particular document, however, depends upon its terms and applicable law.
Can a notary tell me which type of Power of Attorney I need?
No. Choosing a type of POA, determining what authority it should contain, or advising you about its legal consequences constitutes legal guidance that should come from a qualified attorney.
Can Complete Notary Services prepare my Power of Attorney?
No. Complete Notary Services provides notarial services, not legal document preparation or legal advice.
If your Power of Attorney has already been prepared and requires notarization, we can assist with the notarization.
Planning Ahead Can Help You Stay in Control
A Power of Attorney is often associated with giving someone else control. In reality, thoughtful advance planning can be about exactly the opposite: deciding for yourself whom you trust and what authority you want that person to have before assistance is ever needed.
The key is understanding what your document does, choosing your agent carefully, and making sure the document is properly executed.
If you are unsure what type of Power of Attorney you need or what powers should be included, consult a qualified attorney.
If your document has already been prepared and you need a New Jersey Notary Public to come to you, Complete Notary Services can help with the notarization.
Need a Power of Attorney Notarized in Central New Jersey?
Complete Notary Services provides convenient, in-person mobile notary services throughout Central New Jersey.
We can meet you at your home, office, hospital, rehabilitation center, assisted-living community, nursing facility, or another agreed-upon public location.
Already have your Power of Attorney prepared?
Contact Complete Notary Services to schedule your mobile notary appointment.
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Important Disclaimer
Complete Notary Services is not a law firm. I am not an attorney licensed to practice law and may not provide legal advice about immigration or any other legal matter, or accept fees for legal advice, select legal documents for you, draft legal documents, or advise you regarding the legal effect of a document.
This article is provided for general educational and informational purposes only and is not intended as legal advice. Federal and state laws, institutional policies, and individual circumstances vary and may change.
If you have questions about which documents are appropriate, how they should be prepared, or whether documents will be valid or recognized in another state, consult a qualified attorney licensed in the appropriate jurisdiction.
Contact me for an appointment.
Danielle J. Varughese
Mobile Notary Public | Apostille Facilitator | Document Translation Coordinator
+1 609.525.4424
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