How to Create a Financial Power of Attorney in Maryland

How to Create a Financial Power of Attorney in Maryland

Creating a Financial Power of Attorney (POA) in Maryland is an important step for individuals looking to ensure their financial matters are managed according to their wishes in the event they become incapacitated. This document allows you to appoint someone you trust to handle your financial affairs. Here’s a step-by-step guide on how to create a Financial Power of Attorney in Maryland.

1. Understand the Types of Power of Attorney

In Maryland, there are two main types of Financial Power of Attorney: a General POA and a Limited POA. A General POA grants broad powers to your agent, allowing them to handle a wide range of financial matters. In contrast, a Limited POA restricts the agent’s authority to specific tasks, such as selling a property or managing a single bank account.

2. Choose Your Agent Wisely

Your agent, also known as your attorney-in-fact, should be someone you trust implicitly to act in your best interests. This person can be a family member, friend, or even a professional such as an attorney or financial advisor. It’s essential that your agent understands your financial goals and values.

3. Draft the Financial Power of Attorney Document

The next step involves drafting the POA document. In Maryland, it is recommended to use a template that complies with state laws to ensure its validity. The document must include:

  • Your name and the name of your agent.
  • A clear statement of the powers you grant to your agent.
  • Any limitations to the authority of your agent, if applicable.
  • The date the powers begin (immediate or upon incapacitation).

4. Sign the Document in Front of Witnesses

In Maryland, to make your Financial Power of Attorney legally binding, it must be signed by you in the presence of at least one witness. Ideally, the witness should be an adult who is not your agent and does not stand to gain from your financial decisions. Additionally, the document should be notarized to further validate it.

5. Provide Copies and Notify Relevant Parties

Once your Financial Power of Attorney is executed, provide copies to your agent, financial institutions, and any other relevant parties. It’s important that these organizations and individuals are aware of who has the authority to act on your behalf. Keeping these parties informed can help prevent complications in the future.

6. Review and Update as Necessary

Life circumstances can change, so it’s a good practice to review your Financial Power of Attorney periodically. If your relationship with your agent changes or if there are significant changes in your financial situation, you may want to update or revoke the existing document. In Maryland, you can revoke a POA at any time as long as you have the mental capacity to do so.

7. Seek Legal Assistance if Needed

If you have complex financial matters or specific concerns, consulting an attorney who specializes in estate planning can be beneficial. They can help ensure that your Financial Power of Attorney complies with Maryland law, reflects your wishes accurately, and provides the necessary protections.

Creating a Financial Power of Attorney in Maryland is a crucial step in financial planning, providing peace of mind that your affairs will be handled by someone you trust. By following these steps, you can take control and protect your financial future.