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Definition of Power of Attorney in New Jersey
A power of attorney (POA) is a legal document that allows one person, known as the “principal,” to appoint another person, known as the “agent,” to act on their behalf in legal and financial matters.
In New Jersey, a POA is governed by the New Jersey Power of Attorney Act, which provides a framework for the creation, execution, and revocation of POAs.
Types of Powers of Attorney
There are different types of POAs available in New Jersey, each with its own scope and purpose:
- General Power of Attorney: Grants broad powers to the agent to act on the principal’s behalf in all matters, including financial, legal, and personal.
- Limited Power of Attorney: Grants specific powers to the agent to act on the principal’s behalf in certain matters, such as managing finances or making healthcare decisions.
- Durable Power of Attorney: Remains in effect even if the principal becomes incapacitated.
- Springing Power of Attorney: Only becomes effective upon the occurrence of a specified event, such as the principal’s incapacity.
Creating a Power of Attorney in New Jersey
Creating a power of attorney in New Jersey is a relatively straightforward process. Here’s a step-by-step guide to help you create a valid power of attorney:
Before you begin, it’s important to understand that a power of attorney is a legal document that gives another person (your agent) the authority to act on your behalf. This can include making financial decisions, managing your property, or making healthcare decisions.
Required Forms
The first step is to obtain the appropriate power of attorney form. You can find these forms online or at your local stationery store. There are two main types of power of attorney forms in New Jersey:
- Durable power of attorney: This type of power of attorney remains in effect even if you become incapacitated.
- Springing power of attorney: This type of power of attorney only becomes effective if you become incapacitated.
Filling Out the Form
Once you have the appropriate form, you need to fill it out carefully. Be sure to include the following information:
- Your name and address
- The name and address of your agent
- The scope of authority you are granting to your agent
- The date you are signing the document
Witnesses
Once you have filled out the form, you need to have it witnessed by two disinterested parties. These witnesses must be over the age of 18 and cannot be related to you or your agent.
Notarization
The final step is to have the power of attorney notarized. A notary public is a person who is authorized to witness signatures and certify that the document is authentic.
Once the power of attorney has been notarized, it is considered a valid legal document. You should keep the original document in a safe place and give a copy to your agent.
Powers and Duties of an Agent Under a Power of Attorney
An agent under a power of attorney in New Jersey has a wide range of powers and duties. These powers and duties are Artikeld in the document itself and can vary depending on the specific needs of the principal. However, some of the most common powers and duties include:
- Managing the principal’s finances
- Making decisions about the principal’s healthcare
- Representing the principal in legal matters
- Handling the principal’s real estate
- Making gifts on behalf of the principal
It is important to note that an agent’s authority is limited to the powers that are specifically granted in the power of attorney document. An agent cannot act outside of these powers without the principal’s consent.
Limitations on an Agent’s Authority
There are a number of limitations on an agent’s authority under a power of attorney. These limitations include:
- An agent cannot act against the principal’s wishes.
- An agent cannot benefit financially from the power of attorney.
- An agent cannot delegate their authority to another person.
If an agent violates any of these limitations, the principal may be able to void the power of attorney or take legal action against the agent.
Agent’s Fiduciary Duties to the Principal
An agent under a power of attorney has a fiduciary duty to the principal. This means that the agent must act in the best interests of the principal and must avoid any conflicts of interest. The agent must also keep the principal informed of all matters relating to the power of attorney and must account for all funds and property that they handle on behalf of the principal.
Termination and Revocation of a Power of Attorney
A power of attorney in New Jersey can be terminated or revoked by the principal at any time, unless it is an irrevocable power of attorney. There are several ways to terminate or revoke a power of attorney, including:
- By written notice to the agent.
- By destroying the original power of attorney document.
- By executing a new power of attorney that specifically revokes the previous one.
The legal consequences of terminating or revoking a power of attorney are that the agent’s authority to act on behalf of the principal immediately ceases. Any actions taken by the agent after the power of attorney has been terminated or revoked are not binding on the principal.
In addition, a power of attorney may be terminated or revoked by operation of law in certain circumstances, such as:
- If the principal becomes incapacitated.
- If the principal dies.
- If the agent dies.
- If the agent becomes unable to perform their duties.
Special Considerations for Powers of Attorney in New Jersey
In New Jersey, there are specific considerations to keep in mind when creating or using a power of attorney. These include the laws governing durable powers of attorney and the use of powers of attorney in healthcare and financial matters.
Durable Powers of Attorney
Durable powers of attorney remain valid even if the principal becomes incapacitated. This means that the agent can continue to make decisions on behalf of the principal, even if the principal is unable to do so themselves. Durable powers of attorney are often used for long-term care planning or for situations where the principal expects to be incapacitated for an extended period of time.
