by Power of Attorney and the Governing Law
What is a Power of Attorney?
A power of attorney is a legal document that gives one person (the "agent") the power to act on behalf of another person (the "principal"). The agent can be given broad powers, such as the power to sell property, or more limited powers, such as the power to sign checks.
What is Governing Law?
The governing law of a power of attorney is the law of the state where the principal resides. This is because the power of attorney is a creature of state law. The governing law will determine the validity of the power of attorney, the powers of the agent, and the duties of the agent.
Factors Affecting Choice of Governing Law
Principal’s Residence
The principal’s residence is the most important factor in determining the governing law of a power of attorney. This is because the power of attorney is a creature of state law, and the law of the state where the principal resides will govern the validity of the power of attorney.
Agent’s Residence
The agent’s residence is also a factor that can affect the governing law of a power of attorney. If the agent resides in a different state than the principal, the law of the agent’s state may be applied to certain aspects of the power of attorney, such as the agent’s duties and liabilities.
Location of Property
If the power of attorney involves real property, the law of the state where the property is located may also be applied to the power of attorney. This is because real property is governed by the law of the state where it is located.
Attorney’s Advice
It is important to consult with an attorney to determine the governing law of a power of attorney. An attorney can help you to understand the laws of the different states that may be involved and can help you to choose the governing law that is best for your situation.
Table: Governing Law of Power of Attorney
| Factor | Governing Law |
|---|---|
| Principal’s Residence | Law of the state where the principal resides |
| Agent’s Residence | Law of the state where the agent resides |
| Location of Property | Law of the state where the property is located |
| Attorney’s Advice | Law of the state where the attorney is licensed |
Conclusion
The governing law of a power of attorney is an important consideration. By understanding the factors that affect the choice of governing law, you can choose the governing law that is best for your situation.
Be sure to check out some of our other resources on the topic of powers of attorney:
FAQ about Power of Attorney Governing Law
What is a Power of Attorney?
A Power of Attorney (POA) is a legal document that gives someone the authority to act on your behalf in financial, legal, and medical matters.
What is Governing Law?
Governing Law is the legal framework that determines the validity and enforcement of a POA.
What Law Governs a POA?
Generally, the governing law for a POA is the law of the state or country where it is created.
Can I Choose the Governing Law?
In some cases, you may be able to specify the governing law for your POA. However, this is not always allowed or recognized.
What Happens if the POA is Not Valid in the Governing State?
If the POA is not valid in the state where it is used, it may not be enforceable.
What are the Consequences of an Invalid POA?
An invalid POA can lead to disputes, delays, and potential financial or legal liability.
Can I Revoke a POA?
Yes, you can revoke a POA at any time as long as you are mentally competent.
What Happens if I Become Incapacitated?
If you become incapacitated, the POA will continue to be in effect unless it is revoked or modified.
What Should I Consider When Choosing a Governing Law?
Consider factors such as the location of your assets, the laws of the states or countries involved, and the potential for cross-border conflicts.
How Can I Ensure the Validity of My POA?
To ensure the validity of your POA, have it drafted by an experienced attorney and follow the legal requirements of the governing state.
