Nichole Y. Shafer
Guest Columnist
Some people like to draw up their own legal documents without hiring an attorney. Whether that means a person writes his own will or that a person writes her own power of attorney, both if done and executed properly can be legal documents in Ohio.
Thus, in theory, a person could write his own financial power of attorney (as long as properly executed). A simple sentence that is dated and witnessed and/or notarized such as “I want my sister to handle my finances” can be a legal power of attorney (POA). However, a financial POA this simplistic is not advisable for many reasons. The main reason a financial power of attorney this simple would not be advisable is due to the uncertainty of financial institutions to accept the POA, which lacks specific powers.
If my goal is for my sister to be able to handle my finances, a financial institution might require that I add to my POA the specific powers I want my sister to handle. For example, I could simply state that my sister, the agent of my POA, has the power to handle my “banking and other financial institution transactions.”
Other powers that can be granted under a POA (if listed) include but are not limited to an agent’s ability to act on tangible personal property, stocks and bonds and real property. Sometimes when an agent is using a POA to act under the powers granted for real property, the agent will need to produce the original POA instead of a copy. Usually, the need for an original document comes into play when the POA needs to be recorded along with another document (such as a deed).
Further, if a person would like an agent to be able to handle the operation of an entity or business on her behalf, this is a power that must specifically be listed in the POA. Same with an agent’s ability to handle insurance policies and annuities.
If a principal gets sued and wishes for the agent to handle and act on the principal’s behalf regarding any claims and litigations, this power can be specifically listed in a POA.
The power of an agent to handle digital assets can also be listed in a POA. This includes any electronic communications sent or received by the principal, as well as any device owned by the principal capable of receiving, storing, processing or sending a digital asset. The power to handle digital assets is one of the more recent powers that must be listed in a POA.
A POA can list that an agent has the power to handle retirement plans on behalf of the principal. Additionally, the power of an agent to handle a principal’s taxes can also be granted but must be specifically listed in the POA.
Finally, a few other commonly used powers that can be listed in a POA include an agent’s ability to act on behalf of the principal for benefits from governmental programs or benefits from civil or military service.
Nichole Y. Shafer is an Ohio-licensed attorney at Schroeder Law LTD in Putnam County. She limits her practice to business, real estate, estate planning and agriculture issues in northwest Ohio. She can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
