A power of attorney (POA) is an essential document that allows you to designate a trusted individual, known as the attorney-in-fact, to step into your shoes and make decisions on your behalf. As the principal, you have the flexibility to customize this authority, granting as much or as little power as needed to address your unique circumstances.
Grasping the details of a power of attorney, including options like durable power of attorney, and making it match your wishes can be difficult. At The Matus Law Group, our knowledgeable New Jersey estate planning attorney can guide you through the process, helping you establish a POA that aligns with your personal objectives and provides peace of mind.
Are you ready to secure your future and protect your interests? Contact us today at (732) 785-4453 to create a power of attorney that suits your needs. Take the first step toward personalized legal support and guidance.
General Power of Attorney
A general power of attorney is the most wide-reaching grant of power available. The person that you designate can act in a variety of situations, including dealing with your financial matters. This POA is infrequently used as it is extremely broad, and many people do not want to give this much power to someone else.
A general non-durable POA ordinarily becomes effective once it is signed and acknowledged before an officer authorized to take acknowledgments. It remains valid until you revoke it, you lose capacity, or you die. If you include New Jersey’s durable language, the authority continues even through later incapacity.
Durable Power of Attorney
A durable financial POA can function in one of two ways. It can either take effect immediately and survive later incapacity, or it can ‘spring’ into effect upon incapacity. The specific wording in the document determines which approach is used.
In New Jersey, a separate law, the Advance Directives for Health Care Act, governs health-care decision-making. A health-care POA in this state is called a proxy directive, also known as a durable power of attorney for health care. This directive has its own signing rules, requiring two witnesses or a notary. It typically becomes operative when you lack decision-making capacity.
Non‑Durable Power of Attorney
A non-durable power of attorney is a document that lets you appoint someone to handle clearly defined tasks for a limited time. You remain in charge. Your agent can only act within the powers you grant and only while you still have capacity. If you become incapacitated, this type of power of attorney stops. That is the key difference from a durable power of attorney, which continues through incapacity.
You might use a non-durable power of attorney for a single real estate closing, a vehicle sale, signing checks during a long trip, or handling a one-time banking matter. The authority can be narrow and time-limited, so it fits short-term needs without giving broad, ongoing control. In New Jersey, a financial POA must be acknowledged before a notary public, attorney-at-law, or other authorized officer. New Jersey also permits remote online notarization if the 2021 notary law’s requirements are met. These formalities are what third parties rely on when accepting the document.
This authority ends in several ways. It ends if you revoke it, if the stated task or end date is reached, if you become incapacitated, or when you pass away. After death, your will or the probate court controls who handles your estate, not your agent.
Limited Power of Attorney
A limited POA allows the principal to give away only certain rights to the attorney-in-fact. It will set out specific situations where the other individual will have powers of the principal. It can be as limited as you would like. In some cases, the principal may only grant another person powers as it pertains to particular real estate or other property. It can also be set up to only apply for a certain amount of time as well.
Springing Power of Attorney
This POA “springs” into action when the principal becomes incapacitated or debilitated. It will not apply immediately when written, unlike other types of POAs. You may need to have a doctor’s opinion to determine when someone is incapacitated. However, establishing incapacitation or debilitation can sometimes be difficult, which makes this POA tricky in some circumstances.
| Type of Power of Attorney | When It Begins | When It Ends |
|---|---|---|
| General Power of Attorney | When signed and acknowledged | When revoked, upon loss of capacity, or upon death |
| Durable Power of Attorney | When signed or upon incapacity, depending on wording | Upon death or revocation while competent |
| Non-Durable Power of Attorney | When signed and acknowledged | When the task is completed, revoked, or upon incapacity or death |
| Limited Power of Attorney | When signed for specific actions | When the specified task or timeframe ends or when revoked |
| Springing Power of Attorney | When a specific condition occurs, such as incapacity | Upon death or as specified in the document |
Risks and Protections
Estate planning in New Jersey encompasses various legal instruments, including the Power of Attorney (POA), a pivotal document permitting a chosen agent to act on your behalf. The POA holds significant value for those anticipating future incapacitation or for individuals who require immediate assistance with their financial affairs. Whether due to age, health issues, or temporary circumstances like military deployment, a POA ensures continuity in managing your financial obligations.
However, the breadth of authority granted through a POA does not come without risks. Potential abuses range from unauthorized financial transactions to complete forgeries of the document. Therefore, it is of utmost importance to not only choose a trustworthy agent but also to implement protective measures. These measures include:
- Detailed Instructions: Clearly outline the extent of the agent’s powers within the POA document, possibly requiring them to provide regular financial reports to a third party.
- Communication: Inform close friends, family members, and financial advisors of the POA. Their awareness can provide additional oversight.
- Flexibility: Understand that a POA is revocable. Should your confidence in the appointed agent waver, New Jersey law allows you to alter or rescind the POA.
- Vigilance: Be cautious of individuals who aggressively offer to manage your finances. If their help seems implausibly favorable, it may well be a red flag.
New Jersey’s legal framework offers safeguards to minimize POA misuse, mandating that agents act in your best interest. If crafting a POA seems daunting, consulting with an experienced estate planning attorney is advised.
New Jersey Estate Planning Attorney – The Matus Law Group
Christine Matus
Christine Matus is the Founder & Owner of The Matus Law Group and a New Jersey estate planning attorney admitted to the New Jersey Bar and the U.S. District Court for the District of New Jersey in 1995. A graduate of Douglass College, Rutgers University (B.A., Economics, 1992) and Touro College, Jacob D. Fuchsberg Law Center (J.D., 1995), she also studied International Criminal Law and Ethics at St. Anne’s College, Oxford University (1993). Christine is known for guiding families through wills, trusts, and special needs planning, and she regularly speaks on estate planning, real estate, and nonprofit compliance.
Deeply engaged in the profession and her community, Christine serves on the Attorney Arbitration Committee (2021–present) and as Secretary of the Board of Trustees of the Ocean County Bar Association. She is a member of the New Jersey State Bar Association, the American Bar Association (Advisory Panel), and the Asian Pacific American Lawyers Association. Her service includes past leadership and board roles with 21 Plus, MOCEANS, Inc., the American Cancer Society (Ocean County Chapter), the Ocean County YMCA, and the Central Ocean County Rotary. An active mediator with the Superior Court of New Jersey, she also contributes to community publications and has co-authored articles on elder law topics, including nursing home rights and long-term care under OBRA 1993.
POA Forms: Fees and Execution in New Jersey
The fees for filing a POA document vary depending on the county. For example, in Morris County, many recorded documents are $30 for the first page and $10 per additional page, with an indexing fee of $6 per name in excess of five.
A New Jersey financial POA is effective once it is signed and acknowledged, unless the document says it becomes effective upon incapacity (a ‘springing’ POA). It does not have to be filed with the county clerk to be valid. The principal and their attorney can distribute copies of the POA to their financial institutions to show that the agent/s may be able to act on the principal’s behalf.
While it is possible for you to create your own power of attorney form, having an estate planning lawyer guide you in drafting these documents may be a better idea. A skilled lawyer may be able to give you important legal advice and help you avoid costly mistakes.
Attorney Christine Matus is an experienced estate planning attorney who has years of experience in helping many families plan for their future. If you are looking to draft important documents for your future, contact the Matus Law Group in New Jersey today.
When to Register Power of Attorney
Recording a POA in New Jersey is not required for validity. Recording becomes necessary when the POA will be used to sign and record real-estate instruments so that the land records show the agent’s authority. Counties will require that the POA be recorded before or at the same time as the deed. Outside real-estate transactions, institutions may accept an original or certified copy without recording.
In New Jersey, “registering” (recording) a POA is primarily relevant to real-estate transactions. For banking and other financial matters, recording isn’t required; by statute, banking institutions must accept and rely on a properly executed POA that conforms to the Act.
If you plan to use the POA for a real-estate closing, record it before or at the same time as the deed to avoid rejections at the county clerk’s office. For non-real-estate uses, keeping originals or certified copies on hand is usually sufficient.
For individuals considering a POA, consulting with a New Jersey estate planning attorney can provide clarity on the process and help tailor the POA to meet specific needs. At The Matus Law Group, our team can assist in drafting a POA that clearly outlines the powers granted to your chosen agent, ensuring your affairs are handled according to your wishes. Contact us to schedule a consultation.
Choosing an Appropriate Power of Attorney
Deciding on the right person to designate as your power of attorney is an important decision that warrants careful deliberation. Consider these essential factors when identifying the best candidate to serve as your power of attorney:
Evaluate Their Commitment to Honor Your Choices Above Their Own
It’s crucial to confirm that the person you select as your power of attorney is ready to respect and execute your wishes, even if they conflict with their own beliefs or desires. For example, if you’re considering naming your child as your healthcare proxy, but they are hesitant about making critical health-related decisions on your behalf, they might not be the ideal candidate.
Choose a Reliable and Organized Individual
The person you grant power of attorney to will manage important future dealings, which may include financial and healthcare matters. It’s imperative to choose someone you can trust to not only carry out these tasks with precision but also to keep thorough records to avoid any mistakes.
Clarify Their Role and Responsibilities
It’s common for people to accept the role of a power of attorney without fully understanding the responsibilities it entails or the length of the commitment required. Discussing the role in detail beforehand enables an open dialogue with the potential agent, helping you to ascertain if they are equipped for the role.
Remember that while the authority of a power of attorney ends with the person’s death, the responsibilities, especially those related to financial and legal affairs, may continue if the same individual is also appointed as the executor of the estate. Comprehending the process of appointing a power of attorney and the extent of their duties is a critical aspect of estate planning.
Finding a POA that Is Right for You
An experienced estate planning attorney can help you determine which type of POA you need. The Matus Law Group can also help you develop this written document to meet your needs or the needs of a loved one as well. Contact us at (732) 785-4453 for more information.
