A power of attorney is a legal document in which you, the principal, give authority to someone else to handle your affairs. However, even with a valid power of attorney document, banks and financial institutions may insist that your agent sign an “Agent’s Certification as to the Validity of Power of Attorney and Agent’s Authority.” This article will explain the Agent’s Certification form and how to complete it.
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Table of Contents
What Is a Power of Attorney?
A power of attorney allows you to name someone to manage your affairs. You can make a durable power of attorney which begins immediately and remains in effect if you are incapacitated, or you can make a springing power of attorney where your agent only has authority based on an effective date or contingency event (such as an incapacity when you can no longer handle your financial life). Typically, you do not allow your agent to make your health care decisions in a power of attorney but instead name an agent in a health care directive.
What Is an Agent?
The person you choose to handle your financial transactions is your agent or attorney in fact. Since your agent can access your bank accounts and bind you to contracts, it is essential to choose someone you trust. They should also be organized and financially savvy. They have a fiduciary duty to act in your best interest and can face criminal or civil penalties for abusing their powers.
What Does the Agent Have the Authority To Do?
Many states adopted the Uniform Power of Attorney of Act (UPOAA), which outlines general powers for your agent to handle your:
- Real Property (Real Estate)
- Tangible Personal Property (Your Possessions)
- Stocks and Bonds
- Commodities and Options
- Banks and Other Financial Institutions
- Operation of Entity or Business
- Insurance and Annuities
- Estates, Trusts, and Other Beneficial Interests
- Claims and Litigation
- Personal and Family Maintenance
- Benefits from Governmental Programs or Civil or Military Service
- Retirement Plans
- Taxes
- Gifts
- Digital Assets
- Electronic Communications
However, as the “principal,” you decide what authority you want your agent to handle. For example, you may want your agent only to handle real estate transactions or your taxes. The agent’s authority ends upon the death of the principal or the revocation of the power of attorney by the principal.
How Do I Make a Power of Attorney?
Many states have statutory power of attorney forms. However, they can be confusing. You can either do it yourself with online power of attorney forms or hire an attorney to create one for you.
Why Must My Agent Sign an Agent’s Certification?
Banks, financial institutions, and others must make a good faith effort to honor your power of attorney document. However, they may ask for an Agent’s Certification where the agent attests to certain facts about it. Your agent makes an oath to a notary that the power of attorney is active, and the agent has the authority to act on behalf of the principal. Your state may have a statutory form for the Agent’s Certification.
What Is My Agent Certifying?
Each state may have a different Agent’s Certification form, but there are common statements. Your agent makes a sworn statement before a notary public and attests under penalty of perjury that:
- The principal is alive and has not revoked the power of attorney document or the agent’s authority within the document.
- The power of attorney is not terminated.
- If the power of attorney is effective upon a specific date or event, that date or event occurred.
- If the agent is a successor agent, that the primary agent is not able or willing to serve as the agent.
- Any other relevant statement.
The form will also include the following:
- Name of principal
- Name of agent
- Agent’s address
- Agent’s telephone number
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Sample Agent Certification Form
Here is a sample of the UPOAA’s Agent Certification Form:
AGENT’S CERTIFICATION AS TO THE VALIDITY OF POWER OF ATTORNEY AND AGENT’S AUTHORITY
State of _____________________________
[County] of ___________________________]
I, __________________________________ (Name of Agent), [certify] under penalty of perjury that _____________________________(Name of Principal) granted me authority as an agent or successor agent in a power of attorney dated ________________.
I further [certify] that to my knowledge:
(1) the Principal is alive and has not revoked the Power of Attorney or my authority to act under the Power of Attorney and the Power of Attorney and my authority to act under the Power of Attorney have not terminated;
(2) if the Power of Attorney was drafted to become effective upon the happening of an event or contingency, the event or contingency has occurred;
(3) if I was named as a successor agent, the prior agent is no longer able or willing to serve; and
(4) __________________________________________________________
(Insert other relevant statements)
SIGNATURE AND ACKNOWLEDGMENT
_____________________________ __________
Agent’s Signature Date
_____________________________
Agent’s Name Printed
_____________________________
Agent’s Address
_____________________________
Agent’s Telephone Number
This document was acknowledged before me on ___________, by ___________.
_____________________________
Signature of Notary (Seal, if any)
My commission expires: ______________
The signature of notary and signature date go after the agent’s signature. A bank or financial institution may have its own Agent Certification form.
Your agent should have a notarized Agent Certification form ready when they need to contact a third party such as a bank, insurance company, financial institution, etc. It will help your agent to access the information they need to serve on your behalf.
