To become someone’s proxy, you need that person — the principal — to sign a power of attorney naming you as their agent. Learning how to become a proxy comes down to four decisions made in order: what type of authority the principal wants to grant, whether that authority should survive incapacity, who drafts and witnesses the document, and how you handle the duties once you accept. Get those right and you have legal standing to act. Get them wrong and banks, hospitals, and government agencies can refuse to recognize you at the moment it matters most.
Pick the Right Type of Power of Attorney
Proxy authority is only as broad as the document creates it. Choosing the wrong type is one of the most common mistakes people make, and it usually surfaces only when the agent tries to act and discovers the POA doesn’t cover what they need to do.
- General power of attorney grants broad authority over financial and legal matters: paying bills, managing investments, handling real estate, operating bank accounts. The agent can do nearly anything the principal could do personally, with limited exceptions such as making a will.
- Limited (or special) power of attorney restricts authority to a specific task or timeframe. The principal might authorize you to sell a particular property, sign closing documents on a home purchase, or manage a single bank account. When the task is done or the timeframe expires, the authority ends.
- Healthcare power of attorney authorizes you to make medical decisions when the principal can no longer communicate their own wishes. It is one of two common types of advance directive for health care, the other being a living will, which records specific treatment preferences rather than naming a decision-maker.1National Institute on Aging. Advance Care Planning: Advance Directives for Health Care
A general POA does not cover medical decisions, and a healthcare POA does not cover finances. If the principal wants you to handle both, that usually means two documents.
Decide Whether the Authority Is Durable or Springing
The second decision is when the POA takes effect and whether it survives the principal’s incapacity.
Durable Power of Attorney
A durable POA stays in force even if the principal becomes mentally incapacitated. Under the Uniform Power of Attorney Act, which roughly 31 states and the District of Columbia have adopted, a power of attorney is durable by default unless the document specifically says otherwise.2eSign. Uniform Power of Attorney Act – Final Version 2006 In most states, a document silent on durability automatically survives incapacity. For most proxies, this is the point of the arrangement.
Springing Power of Attorney
A springing POA sits dormant until a specific triggering event, typically the principal’s incapacity as certified by a physician. On paper this sounds appealing because the agent has no authority until it’s actually needed. In practice, springing POAs cause serious delays. Getting a doctor’s written certification of incapacity can take weeks. Banks and financial institutions may question whether the certification is genuine, demand additional proof, or refuse to act until they’re satisfied. HIPAA restrictions can make it hard for the agent to even access the medical records needed to prove the POA has sprung into effect. Meanwhile, bills go unpaid. Most estate planning attorneys steer clients toward durable POAs for this reason.
Who Can Serve as a Proxy
The eligibility bar is low. You must be a legal adult and mentally competent, meaning capable of understanding the responsibilities you’re taking on. No professional credentials, certifications, or special training is required.
The practical bar should be higher. You are being asked to manage finances, sign legal documents, or make life-and-death medical decisions. Being trustworthy is the baseline. Being organized, responsive, and willing to push back against institutions is what makes the role workable. Before accepting, have a frank conversation with the principal about their values, priorities, and specific wishes, especially for healthcare decisions where you may face choices no one anticipated.
Draft and Execute the Document
The document itself needs the full legal names and addresses of both the principal and the agent, a clear description of exactly what powers are being granted, and a statement of whether the authority is durable or limited in time. Vagueness is your enemy. A POA that says “handle my financial affairs” without specifying which accounts, what types of transactions, or what dollar thresholds may be rejected by cautious institutions.
Fill-in-the-blank forms exist and can work for simple situations. For anything beyond a narrowly defined task, having an attorney draft or at least review the document is worth the cost. A lawyer can tailor the language to your state’s requirements and anticipate situations the principal hasn’t considered.
Signing, Witnessing, and Notarization
Every state requires the principal to sign the POA, or to direct someone to sign on their behalf if physically unable. Beyond that, the formalities vary. Most states require notarization. Many also require one or two witnesses. Some states require both. Florida, for example, requires two witnesses and notarization. The safest approach for a document you might need to use across state lines is to have it both notarized and witnessed by two disinterested adults.
You, the agent, typically need to formally accept the appointment. Under the Uniform Power of Attorney Act, acceptance happens by exercising authority or performing duties under the POA, or through a written acknowledgment.2eSign. Uniform Power of Attorney Act – Final Version 2006 Some states require explicit written acceptance before the agent can act.
What It Costs
For a straightforward power of attorney, expect to pay $200 to $500 in attorney fees if you hire a lawyer to draft the document. Many estate planning attorneys bundle a POA with a will, trust, and healthcare directive for roughly $500 to $1,500. Complex situations involving multiple agents, business powers, or assets in several states push costs higher. Notarization fees are typically modest, often under $25. If the POA involves real property, some jurisdictions require recording the document with the county clerk’s office, which adds a small per-page fee.
Getting Banks and Other Institutions to Honor the POA
Holding a valid POA is one thing. Getting banks, brokerages, and other institutions to accept it is sometimes another fight. Agents routinely face pushback, especially with older documents or from institutions that would prefer you use their own internal POA forms.
The Uniform Power of Attorney Act addresses this directly. In states that have adopted it, a third party must accept a properly acknowledged POA or request additional verification within seven business days. After receiving any requested certification or legal opinion, the institution must accept the POA within five additional business days. A party that refuses without legitimate reason can be ordered by a court to accept the document and held liable for the agent’s attorney fees and costs.2eSign. Uniform Power of Attorney Act – Final Version 2006 Even in states without these specific protections, many have enacted similar statutes penalizing unreasonable refusal.
Always carry certified copies, not just the original. Bring identification for yourself and documentation linking you to the principal. If an institution balks, calmly ask for the refusal in writing and the name of the compliance officer. That request alone often resolves the problem.
Your Duties Once You Accept
Accepting a power of attorney creates a fiduciary relationship, the highest level of legal obligation one person can owe another. It is not an ethical guideline. It is an enforceable legal duty, and violating it can lead to lawsuits, court orders, and criminal charges. Federal prosecutors have used wire fraud and bank fraud statutes against agents who stole from elderly or disabled principals, with documented prison sentences ranging from over two years to nearly six years.3U.S. Department of Justice. Identifying and Prosecuting Power of Attorney Abuse
Under the Uniform Power of Attorney Act, an agent who accepts appointment must:
- Act in the principal’s best interest. Follow the principal’s known wishes and expectations. When those aren’t clear, do what a reasonable person would consider best for the principal, not what’s convenient for you.
- Act in good faith. Be honest and transparent in every decision and transaction.
- Stay within your authority. If the POA grants you power over financial accounts, you cannot make healthcare decisions. If it covers a single property sale, you cannot start managing an investment portfolio.
- Avoid conflicts of interest. You cannot use your position to benefit yourself at the principal’s expense. Self-dealing, such as transferring the principal’s money or property to yourself, is one of the fastest ways to face legal action.
- Keep records. Document every transaction, payment, and decision you make on the principal’s behalf. If you’re ever challenged, these records are your defense.
These duties apply regardless of what the POA document itself says. Even if the principal writes a POA that doesn’t mention recordkeeping or loyalty, the law imposes these obligations automatically.2eSign. Uniform Power of Attorney Act – Final Version 2006
Where a Standard POA Won’t Work
A general power of attorney covers a lot of ground, but there are important situations where it has no legal effect at all. People discover this the hard way when they try to use a POA in contexts that require their own separate authorization process.
Social Security Benefits
The U.S. Treasury Department does not recognize a power of attorney for negotiating federal benefit payments, including Social Security and SSI checks. Even if you hold a valid, durable POA, you cannot use it to manage the principal’s Social Security benefits.4Social Security Administration. Frequently Asked Questions for Representative Payees You must apply to become a representative payee through the Social Security Administration. The process requires completing Form SSA-11, providing proof of identity, and typically appearing in person at a local SSA office.5Social Security Administration. The Representative Payee Application Having a joint bank account with the beneficiary is not a substitute.
IRS Tax Matters
To represent someone before the IRS, whether responding to audit notices, negotiating payment plans, or accessing confidential tax information, you need IRS Form 2848, not a general POA.6Internal Revenue Service. About Form 2848, Power of Attorney and Declaration of Representative The representative you authorize must also be someone eligible to practice before the IRS: an attorney, CPA, enrolled agent, or in some cases a family member or the tax return preparer.7Internal Revenue Service. Instructions for Form 2848 A friend or neighbor with a general POA cannot walk into an IRS office and negotiate on your behalf.
When Proxy Authority Ends
A POA does not last forever. Knowing when it terminates keeps you from acting on authority you no longer have.
- Revocation by the principal. As long as the principal is mentally competent, they can revoke a POA at any time. The revocation should be in writing and delivered to the agent and any institutions that have been relying on the document.
- Death of the principal. A POA automatically terminates when the principal dies. Authority over the principal’s affairs passes to the executor or administrator of the estate, not the agent.
- Expiration or completion. A limited POA may include a specific end date or terminate when the authorized task is complete. A POA created solely to close a real estate sale ends when the transaction closes.
- Agent resignation. You can voluntarily step down. Written notice to the principal and relevant institutions avoids lingering authority.
- Incapacity of the principal, non-durable POA only. If the POA is not durable, it terminates when the principal loses mental capacity. This is why durability matters so much: a non-durable POA fails at the moment it’s most needed.
Divorce is a common blind spot. In a number of states, divorce automatically revokes a former spouse’s authority under a POA, and any named alternate agent takes over. Not all states have this protection. After any divorce, the safest move is to revoke the existing POA and execute a new one naming a different agent, regardless of what state law provides by default.