A Power of Attorney (POA) is a legal document allowing a person, the principal, to appoint someone else, the agent, to act on their behalf. The agent is given authority to make decisions regarding the principal’s financial or personal matters. This ensures your affairs can be managed by a trusted person if you become unable to do so yourself. This article covers the laws and requirements for creating and using a Power of Attorney in Washington State.
Understanding Different Power of Attorney Types in Washington
Washington State law recognizes several types of Power of Attorney documents. A General Power of Attorney provides an agent with broad authority to handle all of the principal’s affairs. In contrast, a Special or Limited Power of Attorney restricts the agent’s authority to specific, clearly defined tasks.
A Durable Power of Attorney remains valid even if the principal becomes incapacitated and unable to make their own decisions. Without this durable provision, the agent’s authority would end upon the principal’s incapacity. A variation is the Springing Power of Attorney, which only becomes effective upon a specific event detailed in the document, such as a determination of incapacity.
A Power of Attorney for Health Care allows an agent to make medical decisions for the principal. This is one of two main advance directives in Washington. The other, a Health Care Directive (or Living Will), is a document that directs the withholding of life-sustaining treatment and is governed by a distinct state law.1Washington State Legislature. RCW 70.122.030: Directive to Withhold or Withdraw Life-Sustaining Treatment
Key Elements for Creating Your Washington Power of Attorney
To create a Power of Attorney in Washington, the principal must be at least 18 years old and have the mental capacity to understand the document. The selected agent must also be a competent adult or a qualified financial institution. The law permits naming a successor agent to step in if the primary agent is unable to serve.2Washington State Legislature. RCW 11.125.110: Coagents—Successor Agents—Liability
Before drafting the document, you will need to gather specific information, including:
- The full legal names and addresses for yourself, your agent, and any successor agents
- A clear definition of the powers you are granting
- Any limitations on those powers
- A statement on when the POA becomes effective, either immediately or upon a future event
The document can also include provisions for compensating your agent and nominating a person for guardianship if a court later determines one is needed.3Washington State Legislature. RCW 11.125.080: Conservator of Principal’s Estate or Guardian of Principal’s Person For the document to be legally binding, Washington’s Uniform Power of Attorney Act (RCW 11.125) requires the principal’s signature be either acknowledged by a notary public or attested by two competent witnesses.4Washington State Legislature. RCW 11.125.050: Power of Attorney—Requirements These witnesses cannot be the agent, related to the principal or agent, or have any claim to the principal’s estate.
Scope of Authority You Can Delegate
A principal can delegate a wide range of powers to an agent. These commonly include the authority to manage real estate and personal property, conduct banking transactions, operate a business, file tax returns, handle legal claims, and manage insurance policies.
However, certain powers must be explicitly and individually granted in the document to be valid. These “hot powers” include the authority to make a gift of the principal’s property, create or change a beneficiary designation, or alter rights of survivorship on an account. Without a specific grant of these powers, an agent cannot take such actions. This requirement protects the principal’s assets and estate plan from unintended changes.
Activation and Duration of Your Power of Attorney
A Power of Attorney becomes legally effective based on the terms specified within the document. It can be effective immediately upon signing or it can be a “springing” POA that only activates upon a future date or a specific event. The document should clearly define how a triggering event, such as incapacity, will be determined, which is often through a written confirmation by a physician.
An agent’s authority terminates under several circumstances.5Washington State Legislature. RCW 11.125.100: Power of Attorney Termination—Agent Authority Termination The authority ends if:
- The principal dies
- The principal revokes the document
- The POA’s purpose has been accomplished
- A termination date specified in the document is reached
Additionally, if the agent is the principal’s spouse, filing for divorce or legal separation will terminate their authority unless the POA states otherwise.
Modifying or Revoking Your Washington Power of Attorney
A principal with the required mental capacity can change or cancel a Power of Attorney at any time. This can be done by creating a formal written revocation and providing written notice to the former agent.
Executing a new Power of Attorney can also cancel a previous one, but only if the new document explicitly states that the prior POA is revoked. In either case, you must notify any third parties, such as banks or financial institutions, that have been relying on the original document to prevent the former agent from continuing to act on your behalf.