A power of attorney is a written legal document where a principal (you) appoints an agent (or attorney-in-fact) to act on their behalf. In Vermont, powers of attorney are generally durable, meaning they remain in effect regardless of the principal’s incapacity.

A durable power of attorney assigns broad powers to the agent, including:

• • Financial power

• • Real estate transfers

• • Retirement plan management

• • Fiduciary obligations

• • Beneficiary matters on life insurance policies

Most powers of attorney contain these broad powers since they serve as a back-up in case of incapacitation or long-term unavailability.

You can make powers of attorney as limited or broad as you desire. Limited powers of attorney may narrow duties to one category or a group of specific powers (e.g., financial affairs) or one event (e.g., large business purchases).

Carefully consider who you wish to serve as your agent. This individual should be knowledgeable about your life and willing to look out for your best interest. Many people choose their spouse, live-in partner, close friend, sibling, or business associate to fulfill this role. Choose a successor agent, too, in case your first choice is unable or unwilling to serve as your agent when you need them.

If you wish to use your financial power of attorney as a stop-gap in case you become incapacitated, consider assigning broad powers. That step ensures nothing becomes neglected when you cannot address those matters. You can limit duties or split them between two agents. For example, you may want your spouse to handle banking, personal real estate, and childcare matters but assign small business management to your business partner.

Vermont law requires powers of attorney to be signed, witnessed, and notarized. Your witness cannot be related to you or a beneficiary of your estate. Notary publics may be on staff at your local financial institution, or you can hire a mobile notary to visit your home. Ensure your witness is available at the same time since both the notary and the witness need to see you sign the document.

Once it’s complete, make copies of your power of attorney. Provide them to your agent, family members, and anyone else affected by its contents. Store the original in a safe deposit box or fireproof document cabinet.

If you decide to change or revoke your power of attorney, you only need to draft and execute a new one. The new power of attorney cancels out previous ones. However, if you decide you no longer need a power of attorney but do not feel ready to draft a new one, you can sign a power of attorney revocation form. Inform your agent about any revocations; otherwise, they will still be able to act under the original power of attorney.