WHAT IS A POWER OF ATTORNEY?

• A document that authorizes a person who the individual chooses to handle the financial affairs of the individual.
  
  
• The maker of the power of attorney is called "the Principal" and the agent named by the maker is called an "Attorney in Fact". If two attorneys in fact are named the maker can designate whether the two attorneys in fact are to act jointly or separately.
  
  
• Statutory short form power of attorney is the financial power of attorney form typically used in Minnesota.

WHAT IS A DURABLE POWER OF ATTORNEY?

A power of attorney which continues in effect during periods of the maker’s disability, incapacity or incompetency, is a durable power of attorney. The statutory form allows the maker to designate whether the power of attorney will be "durable".

CAN YOU REVOKE THE POWER OF ATTORNEY?

• Yes, a writing signed and acknowledged by the maker may revoke the statutory power of the attorney. However, the revocation is not effective as to the attorney in fact unless the attorney in fact has actual notice of the revocation.
  
  
• The maker of a power of attorney may hold the original power of attorney document. This allows the maker to remain in control and generally results in a simple revocation.

COMMON USES OF THE POWER OF ATTORNEY INCLUDE:

• Transfer and sign real estate documents at closing.
  
  
• Transfer assets for medical assistance planning purposes.
  
  
• Fund living trusts to handle financial matters in the event of incapacity.

STATUTORY SHORT FORM ALSO PROVIDES THE FOLLOWING:

• Allows the maker to designate whether the attorney in fact may transfer the maker’s property to the attorney in fact. If such transfers are authorized, the law limits the amount which may be transferred to $10,000.00 per year.
  
  
• An optional expiration date, commonly used for real estate transactions or in the case of the temporary absence of the maker.
  
  
• Indicates whether the attorney in fact must render a periodic accounting.

CHOOSING AN ATTORNEY IN FACT

• It is extremely important that the maker be confident in the trustworthiness of the attorney in fact.
  
  
• By law the interest of the maker must be the primary focus. The attorney in fact should have similar values and beliefs regarding the exercise of the power of attorney. The attorney in fact should not be intimidated by family members, friends or others who may disagree with the maker’s directions.
  
  
• The attorney in fact must serve as a advocate for the maker’s interests and should be able to communicate effectively with the maker.

NO SUBSTITUTE FOR PROBATE

A Power of Attorney automatically terminates on the death of the maker.

GOVERNMENTAL AGENCIES

Some governmental agencies may not recognize the statutory short form power of attorney. However, such agencies typically allow the attorney in fact to execute the agency’s own form, and thereafter execute agency documents for the maker.

AUTHORITY OF AN ATTORNEY IN FACT

Minnesota law imposes liability upon parties rejecting the authority of an attorney in fact to act on the maker’s behalf in the case of a validly executed statutory short form power of attorney.