Does a Limited Power of Attorney Need to Be Notarized?

The grant of a power of attorney (POA) means the grantor authorizes the grantee to act on their behalf. That's the simple definition, but the topic becomes somewhat confusing due to multiple variations on the basic grant. A power of attorney can be comprehensive or limited, durable or with a defined endpoint, and customized to suit the principal's needs.

Many POA grants are established mainly to manage business and legal affairs for the convenience of the grantor (principal). For example, suppose you must simultaneously be present at two legal or business proceedings in different places. In that case, you can designate a POA to handle one while you handle the other. In that case, you might grant a limited POA, which allows the agent to take specific actions. This type of POA grant generally terminates when the grantor is either dead or incapacitated.

A limited POA grant can be very specific, perhaps allowing the agent to buy real estate but not sell it or transfer funds within accounts (although they may never transfer the grantor's funds or assets to themselves).

Durable POA for Health Care.

Perhaps the most common form of POA is a healthcare grant, also called a healthcare proxy, which allows the agent to make medical decisions for a grantor incapable of acting independently. This kind of POA does not become active until it is needed but will remain in effect until the grantor either dies or regains capacity. This agent may decide on medical treatments, including emergency care, and make potential end-of-life decisions.

Each state governs the granting of POAs.

Each state retains control over creating a POA, including any required witness arrangements and document registration. Most states require two witnesses, while some require a notary but allow two witnesses to substitute for the notary. Florida, Iowa, Kansas, Kentucky, and North Carolina require two witnesses and a notary. Some require using specific forms and recording the document with a state or local agency.

What is the purpose of requiring notarization?

A notary public is appointed by a state and charged with ensuring that signatures on legal documents are not fraudulent or forged. Notaries are disinterested parties and prohibited from notarizing documents if they have an interest in the matter managed in the documents. Using a notary is a good idea, even in states that do not expressly require it, to avoid concerns about the document's validity.

Regarding a POA document, the notary will confirm several matters:

1. Each signer is competent to make a legal agreement.
2. Each party confirms that they understand what they are agreeing to do.
3. The notary will verify each signer's identity by checking documents like passports, driver's licenses, or birth certificates.
4. The parties sign the documents while the notary watches.
5. The notary maintains a signing log that includes the date and time. In some states, the notary also makes a fingerprint of the signers.
6. The notary signs the document and affixes their official stamp for verification. 

The process and objective are the same whether the POA grant is limited, general, springing, or durable, regardless of whether it includes health matters or financial and legal interests.