AWCA Resource Center
AWCA Resource Center

Retirement Planning

Power of Attorney (POA)

This content is provided for informational purposes only. For specific legal advice, please consult with a qualified professional or an official government agency.

A Power of Attorney (POA) is a legal instrument that authorizes a trusted third party (referred to as the “Attorney-in-Fact” or “Agent”) to act on your behalf in legal, financial, and medical matters. This is typically established to ensure your affairs are managed if you become unable to make decisions due to physical or mental incapacity, or absence. It serves as a vital safeguard to honor your wishes and protect your interests in unforeseen circumstances.

*Under New Jersey law, an agent must be at least 18 years of age and must possess the mental capacity to act.

Key Characteristics

  • Flexible Configuration: POA documents can be tailored to specific needs, such as a “Limited POA” for a set duration or a “Springing POA” that only becomes effective upon a specific condition.
  • Revocability and Amendment: As long as the principal (the person granting the power) remains mentally competent, they may modify or revoke the POA at any time in writing. Such changes must be communicated to the agent and relevant institutions.
  • Legal Continuity: In New Jersey and New York, a standard POA is typically terminated if the principal loses mental capacity. (varies by state)
    • To ensure continued authority after the principal becomes incapacitated, a “Durable Power of Attorney” clause must be explicitly included in the document.

Primary Authorities of the Agent

  • Financial and Legal Matters: Managing bank accounts, buying/selling assets, filing tax returns, and executing legal contracts.
  • Healthcare and Medical Decisions (Medical POA): Selecting treatment options, consenting to surgical procedures, and managing hospital admissions/discharges.
    • In New Jersey, a Medical POA is formally known as a Proxy Directive (Durable Power of Attorney for Health Care) and is a component of an Advance Directive.
  • Personal Care and Welfare: Making decisions regarding daily residence and selecting personal care services.
  • Educational Decisions: Acting on behalf of minor children or the principal regarding academic services and educational matters.
  • Travel and Logistics: Planning travel, managing passports, and handling administrative tasks related to relocation.

Considerations for Drafting

  • Selection of Agent: Since the agent is legally bound to act in your best interest, you must choose a highly trustworthy individual. The principal must be at least 18 years old and mentally competent at the time of signing.
  • Notarization: In New Jersey, a Financial POA must be signed before a Notary Public to be legally enforceable. A Proxy Directive requires either two adult witnesses or notarization.
  • Expiration: A POA expires immediately upon the death of the principal. Following death, asset management is governed by a Last Will and Testament or through the Estate Probate Process.

    *New Jersey does not provide a standard official form for a Financial POA; professional legal consultation is recommended.

Contact

AgencyServices ProvidedContact Information
NJ ADRC

(Aging & Disability
Resource Connection)
Service connection and counseling for seniors, individuals with disabilities (18 and above), and family caregivers by county.1-877-222-3737

(Connects automatically to your local county office)
Bergen County Division
of Senior Services
Information, assistance, and referrals for legal services.One Bergen County Plaza, 2nd Floor,

Hackensack, NJ 07601

201-336-7400

seniors@bergencountynj.gov
NNJLS

(Northeast New Jersey Legal Services)		Free legal aid for low-income residents,
seniors, and the disabled (subject to eligibility).
190 Moore Street, Suite 100,

Hackensack, NJ 07601

201-487-2166

NNJLS.org
LSNJ
(Legal Services of New Jersey Hotline)		Statewide legal hotline providing free legal advice and information.1-888-576-5529

lsnjlawhotline.org

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Retirement Planning