In the state of Maryland, having a power of attorney (POA) is crucial for individuals who want to ensure that their financial and medical decisions are made by a trusted person in the event they become incapacitated. One of the most common types of POA in Maryland is the statutory form power of attorney. Here are five key facts about Maryland statutory form power of attorney that you should know:
What is a Statutory Form Power of Attorney in Maryland?
A statutory form power of attorney in Maryland is a legal document that allows an individual (the principal) to appoint another person (the agent or attorney-in-fact) to make financial decisions on their behalf. This type of POA is governed by the Maryland General and Limited Power of Attorney Act.
Key Features of a Maryland Statutory Form Power of Attorney
A Maryland statutory form power of attorney has several key features that make it an attractive option for individuals who want to plan for the future. Some of the key features include:
- The principal can appoint one or more agents to make financial decisions on their behalf.
- The agent has the authority to make decisions regarding the principal's financial affairs, including real estate, banking, and investments.
- The POA can be durable, meaning that it remains in effect even if the principal becomes incapacitated.
- The POA can be limited in scope, allowing the principal to specify exactly what powers they want to grant to the agent.
Benefits of a Maryland Statutory Form Power of Attorney
There are several benefits to having a Maryland statutory form power of attorney. Some of the benefits include:
- Convenience: A POA allows the agent to make financial decisions on behalf of the principal, eliminating the need for court intervention.
- Flexibility: The principal can customize the POA to fit their specific needs and circumstances.
- Peace of mind: Knowing that someone they trust has the authority to make financial decisions on their behalf can provide the principal with peace of mind.
- Protection: A POA can help protect the principal's assets and ensure that their financial wishes are carried out.
How to Create a Maryland Statutory Form Power of Attorney
Creating a Maryland statutory form power of attorney is a relatively straightforward process. Here are the steps you can follow:
- Choose an agent: Select a person you trust to make financial decisions on your behalf.
- Determine the scope of the POA: Decide what powers you want to grant to the agent.
- Complete the statutory form: Use the Maryland statutory form power of attorney template to create the document.
- Sign the document: Sign the POA in the presence of two witnesses and a notary public.
- Notarize the document: Have the notary public notarize the document.
Pitfalls to Avoid When Creating a Maryland Statutory Form Power of Attorney
While a Maryland statutory form power of attorney can be a valuable tool for planning for the future, there are several pitfalls to avoid when creating the document. Some of the pitfalls include:
- Choosing the wrong agent: Select an agent who is trustworthy and capable of making financial decisions on your behalf.
- Granting too much power: Be careful not to grant the agent too much power, as this can lead to abuse.
- Failing to customize the POA: Make sure to customize the POA to fit your specific needs and circumstances.
- Not signing the document properly: Make sure to sign the document in the presence of two witnesses and a notary public.
Common Mistakes to Avoid When Creating a Maryland Statutory Form Power of Attorney
Here are some common mistakes to avoid when creating a Maryland statutory form power of attorney:
- Using an outdated form: Make sure to use the most recent version of the Maryland statutory form power of attorney template.
- Not having the document witnessed: Make sure to have the document witnessed by two people.
- Not having the document notarized: Make sure to have the document notarized by a notary public.
- Not keeping the document safe: Make sure to keep the document in a safe place, such as a fireproof safe or a safe deposit box.
Conclusion
A Maryland statutory form power of attorney is a valuable tool for individuals who want to plan for the future. By understanding the key features, benefits, and pitfalls to avoid, you can create a POA that meets your specific needs and circumstances. Remember to choose the right agent, customize the POA, and avoid common mistakes when creating the document. With a Maryland statutory form power of attorney, you can have peace of mind knowing that your financial decisions are in good hands.
What is the difference between a Maryland statutory form power of attorney and a general power of attorney?
+A Maryland statutory form power of attorney is a specific type of power of attorney that is governed by the Maryland General and Limited Power of Attorney Act. A general power of attorney, on the other hand, is a more general document that grants the agent broad powers to make decisions on behalf of the principal.
Can I revoke a Maryland statutory form power of attorney?
+Yes, you can revoke a Maryland statutory form power of attorney at any time. To revoke the POA, you must sign a written revocation document and provide it to the agent and any other parties who have a copy of the original POA.
Do I need to have a Maryland statutory form power of attorney notarized?
+Yes, a Maryland statutory form power of attorney must be notarized in order to be valid. The notary public must witness the principal's signature and verify their identity.