A power of attorney is a legal document granting a trusted individual the authority to make decisions on your behalf. This instrument allows New Hampshire residents to plan for future incapacity or situations where assistance with financial or healthcare matters is needed. It lets you choose who will manage your affairs and under what circumstances, providing a clear framework for your designated representative.
What is a Power of Attorney in New Hampshire
In New Hampshire, a power of attorney establishes a legal relationship where the “principal” gives an “agent,” also known as an “attorney-in-fact,” the power to act on their behalf. This arrangement is governed by the state’s Uniform Power of Attorney Act, which outlines the agent’s duties and responsibilities. The agent is legally required to act in the principal’s best interest, a responsibility known as a fiduciary duty.
Key Types of Power of Attorney Recognized in New Hampshire
New Hampshire law recognizes several types of power of attorney documents. A General Power of Attorney provides the agent with broad authority to handle a wide range of financial matters, from managing bank accounts and paying bills to overseeing investments and real estate transactions.1New Hampshire Revised Statutes. New Hampshire Revised Statutes Section 564-E:301 (2022) – Statutory Form Power of Attorney.
A Limited, or Special, Power of Attorney grants the agent specific powers for a defined purpose or a limited time. For example, a principal might use a limited POA to authorize an agent to sell a piece of property while the principal is out of the country. The agent’s authority ends once the task is complete or the time period expires.
A Durable Power of Attorney is a key tool for planning. Under New Hampshire law, a POA is automatically durable unless the document states otherwise, meaning the agent’s authority continues if the principal becomes incapacitated. Without this durable provision, the POA would terminate upon the principal’s incapacity, which is often when it is most needed.
A Springing Power of Attorney becomes effective only upon a specific event detailed in the document, such as the certified incapacity of the principal. An Advance Directive, or Medical Power of Attorney, addresses healthcare decisions. This document allows an agent to make medical choices for the principal when they are unable to do so themselves.2New Hampshire Revised Statutes. New Hampshire Revised Statutes Title X, Chapter 137-J (2024) – Written Directives for Medical Decision Making for Adults Without Capacity to Make Health Care Decisions
Establishing a Valid New Hampshire Power of Attorney
To create a legally binding power of attorney, the principal must be mentally competent when signing. The process involves selecting a trustworthy agent and naming a successor who can serve if the primary agent is unavailable. The document must identify the principal and agent and detail the granted powers.
The principal decides if the powers are broad or limited and when they become effective, either immediately or upon a future event like incapacity. While New Hampshire offers statutory forms, using generic online templates can be risky.
For a POA to be valid, it must be in writing, dated, and signed by the principal or by another person in the principal’s conscious presence and at their direction. The principal’s signature must be acknowledged before a notary public or another authorized official.3New Hampshire Revised Statutes. New Hampshire Revised Statutes Section 564-E:105 (2017) – Execution Of Power Of Attorney.
Advance Directives for healthcare have their own execution requirements. These documents must be signed by the principal and either witnessed by two qualified individuals or acknowledged before a notary public or justice of the peace.
Agent’s Responsibilities and Limitations Under New Hampshire Law
An agent has a fiduciary duty to act in the principal’s best interest. This legal obligation requires the agent to act loyally, in good faith, and with care. Key responsibilities include:
- Acting only within the scope of the authority granted in the document.
- Keeping a detailed record of all receipts, disbursements, and transactions.
- Avoiding conflicts of interest and not using the principal’s assets for personal benefit unless specifically authorized.
- Cooperating with any other agents, who may act independently unless the document specifies otherwise.
An agent’s authority is limited to the powers granted and does not include the power to create or change the principal’s will. The agent’s authority ceases upon the principal’s death, though the document may grant limited power to help wind up the principal’s affairs.
Changing or Ending a Power of Attorney in New Hampshire
A mentally competent principal can change or end a power of attorney at any time. To terminate the document, the principal must execute a written revocation and provide copies to the agent and any relevant third parties, like financial institutions. Amending a POA requires the same legal formalities as creating it, meaning changes must be in writing, signed, and notarized.
A power of attorney also terminates automatically in several situations:
- Upon the principal’s death.
- On a termination date specified in the document.
- If the agent is the principal’s spouse and either party files for divorce, unless the POA states otherwise.
- When an agent dies, resigns, or becomes incapacitated, at which point the successor agent takes over.