Legal Definition and Scope of Power of Attorney in Indiana
A power of attorney is a legal document that gives one person (the “agent”) the authority to act on behalf of another person (the “principal”). The agent can be given broad or limited powers, depending on the terms of the power of attorney. In Indiana, powers of attorney are governed by the Indiana Power of Attorney Act.
The Indiana Power of Attorney Act defines a power of attorney as “a written instrument that gives one person, the agent, the power to act for and in the place of another person, the principal, with respect to the subject matter of the power of attorney.” The Act also states that a power of attorney must be signed by the principal and two witnesses.
Scope and Limitations of Power of Attorney in Indiana
The scope of a power of attorney is determined by the terms of the document. The principal can give the agent broad powers, such as the power to manage the principal’s finances, make medical decisions for the principal, or sell the principal’s property. The principal can also give the agent limited powers, such as the power to sign a specific document or to make a specific decision.
There are some limitations on the powers that an agent can be given under a power of attorney. For example, an agent cannot be given the power to make a will for the principal, to marry or divorce the principal, or to adopt or disinherit a child of the principal.
Common Uses of Power of Attorney in Indiana
Powers of attorney are commonly used in Indiana for a variety of purposes, including:
- To manage the finances of an elderly or disabled person
- To make medical decisions for an incapacitated person
- To sell the property of a person who is out of town or otherwise unavailable
- To sign documents on behalf of a person who is unable to do so
- To make decisions about the care of a child or other dependent
Types of Power of Attorney in Indiana
In Indiana, there are several types of power of attorney, each with its own specific powers and purposes. Understanding the different types of power of attorney can help you choose the one that best meets your needs.
The most common types of power of attorney in Indiana are:
Durable Power of Attorney
A durable power of attorney remains in effect even if the principal becomes incapacitated. This type of power of attorney is typically used to give someone the authority to make financial and legal decisions on your behalf if you are unable to do so yourself.
Springing Power of Attorney
A springing power of attorney only takes effect when a specific event occurs, such as your incapacity. This type of power of attorney is often used to give someone the authority to make decisions about your healthcare or finances if you become unable to do so yourself.
Limited Power of Attorney
A limited power of attorney gives someone the authority to make decisions only in a specific area, such as managing your finances or making healthcare decisions. This type of power of attorney is often used to give someone the authority to handle a specific task or set of tasks on your behalf.
Creating a Power of Attorney in Indiana
Creating a power of attorney in Indiana involves following specific steps to ensure the document is valid and legally binding. Understanding these steps and the requirements is crucial for individuals seeking to grant authority to another person to act on their behalf.
Requirements for a Valid Power of Attorney
A power of attorney in Indiana must meet certain requirements to be considered valid. These requirements include:
- The document must be in writing.
- The principal (the person granting the power) must be of sound mind and body.
- The agent (the person receiving the power) must be identified by name.
- The powers granted to the agent must be clearly defined.
- The document must be signed by the principal in the presence of a notary public.
- The document must be witnessed by two disinterested witnesses.
Steps to Create a Power of Attorney
Creating a power of attorney in Indiana involves the following steps:
1. Determine the Scope of Authority: Identify the specific powers you want to grant to the agent, such as managing finances, making healthcare decisions, or handling legal matters.
2. Choose an Agent: Select a trustworthy and responsible individual to act as your agent. Consider their experience, trustworthiness, and ability to handle the responsibilities you are delegating.
3. Prepare the Document: Obtain a power of attorney form from an attorney, online resource, or legal aid organization. Fill out the form carefully, providing the necessary information about the principal, agent, and scope of authority.
4. Sign and Notarize: Sign the power of attorney document in the presence of a notary public. The notary will verify your identity and ensure that you understand the contents of the document.
5. Witness the Signature: Two disinterested witnesses must observe you signing the document and attest to your signature.
6. File the Document (Optional): While not required by law, you may consider filing the power of attorney document with the county recorder’s office. This provides public notice of the agent’s authority and can prevent unauthorized use.
Sample Power of Attorney Form for Indiana
The Indiana Bar Association provides a sample power of attorney form that can be used as a template for creating a valid document. This form includes all the necessary provisions and can be customized to meet your specific needs.
Remember, it’s always advisable to consult with an attorney if you have any questions or concerns about creating a power of attorney in Indiana. An attorney can help you ensure that the document is legally sound and meets your specific requirements.
Revoking or Modifying a Power of Attorney in Indiana
A power of attorney can be revoked or modified in Indiana for various reasons. Here’s an overview of the grounds and procedures for revoking or modifying a power of attorney in the state.
Grounds for Revocation or Modification
A power of attorney can be revoked or modified if:
– The principal (person granting the power) becomes incapacitated.
– The agent (person granted the power) misuses or abuses their authority.
– The circumstances that led to the creation of the power of attorney have changed significantly.
– The principal wishes to revoke or modify the power for any reason.
Procedure for Revocation or Modification
To revoke or modify a power of attorney in Indiana, the principal must follow these steps:
– Execute a written revocation or modification document.
– Sign the document in the presence of two witnesses.
– Have the document notarized.
– Deliver the document to the agent and any third parties who have relied on the power of attorney.
Sample Revocation or Modification Form
The Indiana Supreme Court provides a sample revocation or modification form that can be used to revoke or modify a power of attorney. The form is available online at https://www.in.gov/judiciary/forms/approved-forms/.
Duties and Responsibilities of an Agent Under a Power of Attorney in Indiana
An agent under a power of attorney in Indiana has several important duties and responsibilities. These duties include:
- Acting in accordance with the principal’s wishes
- Exercising reasonable care and diligence
- Keeping accurate records
- Avoiding conflicts of interest
- Acting in good faith
An agent who breaches their duties may be held liable for damages. Common breaches of duty by agents under a power of attorney include:
- Exceeding the authority granted by the power of attorney
- Acting negligently or recklessly
- Misusing the principal’s funds or property
- Failing to keep accurate records
- Acting in their own self-interest
Legal Protections for Principals and Agents Under Power of Attorney in Indiana
The Indiana Power of Attorney Act provides legal protections for both principals and agents to ensure the responsible and ethical use of powers of attorney.
The court has a role in overseeing powers of attorney, including:
– Reviewing the document for validity and compliance with legal requirements.
– Appointing a guardian ad litem to represent the principal’s interests if they are incapacitated or have a conflict of interest with the agent.
– Resolving disputes between the principal and agent.
In the event of a dispute, legal remedies available to principals and agents may include:
– Accounting: The agent may be required to provide a detailed accounting of their actions under the power of attorney.
– Injunction: The court may issue an injunction to prevent the agent from taking certain actions or to compel them to perform certain duties.
– Removal: The court may remove the agent from their role if they have breached their duties or are no longer able to fulfill them.
– Damages: The principal may be entitled to damages for any losses or harm caused by the agent’s breach of duty.
