A Power of Attorney (POA) gives another person, called an agent, the legal right to act on someone else’s behalf. In Maryland, the person who creates the POA, called the principal, decides how much power to give.
The law allows the principal to limit the agent’s authority in many ways. It is important to understand the extent of these limitations so you can make informed decisions when granting someone Power of Attorney over your estate.
What can a Power of Attorney do?
Maryland law includes a statutory form for financial Power of Attorney. This form covers many common powers, such as banking, taxes, real estate and retirement accounts. The principal does not need to give all of these powers to the agent. The principal may cross out any sections that do not apply or add instructions that limit what the agent may do.
The principal may also write specific rules in the POA document. For example, the principal may allow the agent to manage bank accounts but not sell property. The principal may allow the agent to make small gifts but block large financial changes. These limits must be clear and placed directly in the document.
A principal may also create a springing POA. This means the POA only becomes active if a specific event happens, such as a doctor saying the principal cannot make decisions. This approach adds another layer of protection and keeps the agent from using the POA too early.
Can you change or revoke a Power of Attorney?
If the principal wants to remove powers later, they may revoke the POA or create a new one. The new POA should clearly state that it replaces all earlier documents. This helps avoid conflicts or mistakes later.
In Maryland, a Power of Attorney does not need to give full control. The law gives you the freedom to decide what powers to grant, how to limit them and when they may apply. These choices help protect your assets and make sure your agent only acts when needed.