Making a Power of Attorney for Legal and Financial Decisions

A power of attorney (POA) is a document that allows you to name a person you trust to make decisions for you. This article covers POAs related to money and legal decisions. For health-related decisions, you'll need a separate health care power of attorney. To learn more about health care POAs, go to the Health Care Powers of Attorney resource page.

You can make a POA in Michigan if you are at least 18 years old and have “capacity” to sign the document. Having capacity means you understand:

• That the POA gives another person the power to make decisions for you
• What kinds of decisions they will be able to make
• How this can impact you and your property

Your Choice: Power of Attorney Cannot Be Forced on You

A POA is a document that you can choose to sign that lets someone help make your decisions.

You cannot make someone else sign a POA, even if you think they need help. The choice always belongs to the person signing.

If someone is trying to force you to sign a POA, you may want to speak to a lawyer. You might be eligible for help from a free legal aid lawyer. Use the Guide to Legal Help to find a lawyer in your area. 

How to Choose an Agent (Substitute Decision-Maker)

A Power of Attorney (POA) lets you choose someone to make decisions for you. This person is your "agent."

Your agent should be someone you trust completely. They will have power to make important money and legal decisions for you. This person must also be:

• at least 18 years old
• able to understand and make decisions clearly

Before naming someone, talk to them first. Make sure they are willing to do this job. Even after you name them in the document, they can still say no if they don't want to do it.

You can also name a backup agent. This is not required, but it is a good idea. This will make sure that someone else can act if your agent is not available.

What Powers Can the Power of Attorney Give?

A legal and financial POA can let your agent handle almost any money or legal matters for you. But you don't have to give them control over everything.

The POA form has checkboxes that let you pick exactly which powers you want to give. You can choose some powers and not others.

The form lists many different areas your agent could control. Some might not apply to your life right now, but they could in the future. For example, you might not be involved in any court cases today, but someone could sue you later. If you want your agent to be able to handle future situations, you should check those boxes now.

Below is a list of the powers you can choose to give your agent:

• Real Property: Handle houses, land, and buildings you own including maintenance, mortgages, and property taxes
• Tangible Personal Property: Manage physical items you can touch (furniture, cars, jewelry)
• Stocks and Bonds: Control investments in companies and governments
• Commodities and Options: Manage special types of investments like gold or the right to buy things later
• Banks and Other Financial Institutions: Use your checking accounts, savings, loans, and credit cards
• Operation of Entity or Business: Run your business or company
• Insurance and Annuities: Manage your insurance policies and similar contracts
• Estates, Trusts, and Other Beneficial Interests: Control money or property you might receive from others after they die
• Claims and Litigation: Start or participate in court cases you could be involved in
• Personal and Family Maintenance: Take care of money needs for you, your spouse, your children, and anyone else who depends on you
• Benefits from Government Programs or Civil or Military Service: Handle public benefits like food stamps (FAP), cash assistance, Medicare, Medicaid, Social Security, or military benefits
• Retirement Plans: Control retirement accounts like a 401(k), IRA, or pension
• Taxes: Handle your tax forms and payments

The POA form also lists some powers that could be higher risk to give someone. These powers can be harder to undo if your agent misuses them. Be extra careful when deciding about these powers:

• Create, amend, revoke, or terminate an inter vivos trust (a living trust): Make or change a trust that manages your property while you're alive
• Make a gift: Give away your money or property to others
• Create or change rights of survivorship: Set up accounts where another person automatically gets your property when you die
• Create or change a beneficiary designation: Change who gets your life insurance, retirement accounts, or other benefits when you die
• Authorize another person to exercise the authority in the POA: Pass their powers to someone else you might not know or trust
• Waive the principal's right to be a beneficiary: Give up your right to receive payments that would continue after your spouse's death
• Exercise fiduciary powers that the principal (you) has authority to delegate: Take over your responsibilities to manage money for others
• Access the content of electronic communications: Get your emails, text messages, and other private online communications
• Exercise authority over any "bank, securities, or other financial account in a foreign country" within the meaning of 31 CFR 1010.350: Control money you have in accounts outside the United States

How to Make a Power of Attorney for Legal and Financial Decisions

Michigan created an official power of attorney (POA) form that's easier to use than writing one from scratch. The Kimball Center, part of Cooley Law School, has a fillable version of the power of attorney form available with explanations and instructions. This form becomes legally valid when:

• You fill out the form with your preferences
• You sign it in front of either:
  1. two witnesses OR
  2. a notary
• The witnesses or notary also sign the form

If you have witnesses, you do not have to get your POA notarized. However, getting it both witnessed and notarized can be helpful because it makes your POA look more official and banks and other companies are less likely to question it. Many people choose to get their POA notarized even though it’s not required, just to avoid problems later.

Before your agent uses the POA to act for you, they must sign the “Acceptance” section of the document. They can do this at the time you sign the POA or later.

Revoking (Cancelling) a Power of Attorney for Legal and Financial Decisions

You can cancel your Power of Attorney (POA) at any time as long as you have “capacity.” Having legal capacity means that you understand your decisions. This means:

• You understand that your POA gave someone else power to make decisions for you, and
• Now you want to take away that power

To make sure everyone knows about your decision, it is safest to put the cancellation in writing.

Use the fillable Revocation of Financial POA form. Send copies of this letter to:

• Your agent (the person you named in your POA)
• Any backup agents you listed
• Places that might have your POA on file (like your bank)