What You Need to Know about Power of Attorney Requirements in Florida

Anyone who needs to provide someone the right to perform certain legal actions on their behalf must understand these rules for appointing power of attorney?

Key Takeaways:

• You must be at least 18 years and be of sound mind to assign a power of attorney
• Both parties need to understand the requirements and benefits of a power of attorney
• A POA must be signed before competent witnesses – not an agent, blood-related family member, doctor, or heir

A power or attorney, or POA, is a legal document that enables you (the principal) to grant another individual the power or authority to make critical financial or medical decisions on your behalf. The person you appoint then becomes your agent.

Florida’s legislature established a set of requirements on the power of attorney law, which has been effective since October 1, 2011. The law provides an option to create a “durable” power of attorney that remains effective even if you become incapacitated. A durable power of attorney reduces the chance of having a court-appointed guardian on your behalf.

The effectiveness of a power of attorney requires adhering to the set requirements. Note that you don’t have to hire a lawyer in Florida to create your power of attorney. The law allows you to do it yourself, saving you time and money – as long as you adhere to the requirements. This article discusses the requirements needed to appoint a power of attorney.

Types of powers of attorney

In Florida, the law defines several types of powers of attorney, each serving a specific purpose and giving the agent unique authority. Consider the extent of the decisions you’d like your agent to make on your behalf to help you make the best decision.?

A?durable power of attorney?grants your agent authority that continues even if you become incapacitated to the extent that you are unable to make decisions yourself. For example, if the asset holder were in a coma, their agent would have the authority to make decisions. This type of POA is applicable for estate planning, primarily because you’re taking long-term action in case you may not be able to decide on your own later.

If your POA isn’t durable, your agent won’t have the power to act on your behalf if you become incapacitated. The following types of POAs can also be durable if they contain any similar,legally recognized variation of these words: “This power of attorney is durable and not terminated by subsequent incapacitation of the principal”:

• General or financial power of attorney: This gives your agent the authority to handle all your business and financial matters.
• Limited power of attorney: The agent only acts for a specified amount of time, in certain scenarios, and/or to complete specific tasks.
• A medical power of attorney: In Florida, this POA is also a “designation of healthcare surrogate.” A medical power of attorney allows the agent to make healthcare decisions on your behalf concerning your medication, treatment options, and end-of-life care.

What are the power of attorney requirements in florida?

For any person to assign a POA in Florida, they must:

• Be over the age of 18 years.
• Have a “sound mind,” meaning they know and understand the impact of making a POA.
• Sign the POA in the presence of two competent witnesses who must be over the age of 18.
• Sign in the presence of an authorized notary. There may be exceptions to having a notary present in the case of a medical or military POA.

The witnesses must not have an interest in your POA, meaning they must not be:

• Your agent
• A family member related to you by marriage or blood
• Your doctor or any healthcare service provider
• Someone who stands to inherit something from your estate when you’re gone

Other powers of attorney specifications outlined in the POA law are:

1. Valid out-of-state POAs are acceptable in Florida

If you have a?valid out-of-state POA?and its execution is binding in another state, it still applies in Florida. However, if a third party is called upon to accept an out-of-state POA, they may request an opinion to counsel about the power’s validity at the principal’s expense. Military POAs also remain valid in Florida as long as they’re executed within the relevant federal law.

2. Third parties that don’t honor a POA must do so in writing

Third parties must agree to or reject a POA within a reasonable timeframe, which by most financial institutions is generally not more than four business days. For other third parties, the reasonable time depends on the terms and specific circumstances of the POA.?

It may also be necessary for an agent to sign an affidavit showing that to the best of the agent’s knowledge, the principal isn’t deceased. As such, the POA remains in full force and effect.

3. Powers granted in a POA must be specific

The law doesn’t recognize broad grants of authority in a POA. In other words, powers that allow an agent to “do everything the principal could do” are invalid. Under the?new POA law?passed in 2011, an agent can only perform the actions expressed in the document.?

For example, if the agent is to conduct investment or banking transactions, the new law established specific banking or investment functions they may perform without particular details in the document.

4. Qualified agents may receive compensation

The law allows all agents to be reimbursed for their expenses while executing the principal’s tasks. However, only the following may receive compensation:

• The principal’s spouse and heirs
• Florida attorneys and certified public accountants
• Financial institutions with Florida trust powers
• Natural persons who reside in Florida and aren’t an agent to more than three principals simultaneously

5. Photocopies are acceptable

Electronically submitted copies and photocopies of the original POA can serve in the same way as the original. However, that doesn’t eliminate the necessary recording of the original POA in a county’s official records to use a POA to convey real property.

6. Agents must keep records

Agents must record all receipts, reimbursements, and transactions conducted on behalf of the principal. If the principal requires the agent to access a safe-deposit box, the agent must submit an inventory of the contents each time they access the box.

PeytonBolin has qualified attorneys to help you create a power of attorney?

Powers of attorney are one of the most crucial elements of a well-drafted estate plan. It’s essential to consult a qualified attorney when drafting the document to ensure you comply with the new Florida laws on POA.

The high-energy, results-driven real estate lawyers at PeytonBolin can help you create a power of attorney. Our team has a strong drive to deliver high-quality legal services you can trust.?Contact us?today to schedule a consultation to determine the best legal strategy to meet your POA goals.

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