How to Write a Special Power of Attorney Letter: Step-by-Step Guide

Giving another person the authority to take actions on your behalf under certain circumstances—such as the ability to make medical decisions or conduct financial transactions—is a significant matter. 

While writing a special power of attorney letter is a relatively straightforward task, it requires careful attention to detail to ensure that your wishes are clearly communicated and your interests are protected. 

Follow our guide to learn how to write a valid and enforceable special power of attorney letter. 

What is a special power of attorney?

A special power of attorney (sometimes called a limited power of attorney) is a written authorization granting another person or professional—also known as an "agent" or "attorney-in-fact"—the authority to act on your behalf in certain situations. The most common reasons a person establishes a power of attorney are for financial or health purposes.

Granting someone a power of attorney does not take away your ability to make legal and financial decisions for yourself, so long as you have the mental capacity to do so. In fact, if you and your agent disagree on a decision, you have the final say.

You can revoke a special power of attorney at any time, and, unless your power of attorney is durable, it will automatically be revoked if you become incapacitated. Additionally, a special power of attorney typically only remains valid until a specified event, such as the fulfillment of a designated task or a predetermined expiration date. A special power of attorney terminates upon the death of the principal. 

Special POA duties

While a special power of attorney agent’s responsibilities can differ depending on their specific tasks, there are a few core duties that they typically perform.

A special power of attorney agent can fulfill the following obligations:

• Carry out specific tasks. The agent is only authorized to handle specific tasks as outlined in the special power of attorney letter. For example, the agent may be authorized to sign certain legal documents or manage a real estate or business transaction on behalf of the principal.
• Act within a defined scope. Unlike a general power of attorney, a special power of attorney grants limited authority to take specific actions. The agent can only act within the scope of legal authority outlined in the document. For instance, a special power of attorney may allow an agent to sell the principal’s automobile but may restrict the agent from accessing the principal’s bank accounts​.
• Fulfill the responsibility in a timely manner. A special power of attorney is generally only in effect until the task is completed or a set expiration date is reached, at which point the agent’s authority ends.​
• Maintain the principal’s best interests. The agent must act in the best interests of the principal, ensuring that all decisions made concerning the principal’s personal or business affairs are in accordance with the principal’s desires as defined in the legal document​.

When to use a special power of attorney

You might consider using a special power of attorney if you have a specific duty that you would like to provide another person authority to handle. 

A special power of attorney is commonly used for the following situations:

• Handling real estate transactions
• Managing financial accounts
• Signing documents during travel
• Handling legal proceedings when the principal is unavailable

How to draft a special POA letter in 7 steps

Follow these seven steps to write and execute your special power of attorney letter. 

Step 1. Draft a list of special powers

The first step to writing a special power of attorney is to come up with a list of each special power you want to assign. Because special powers are meant to be precise, you must explicitly state the transactions, accounts, or property that your agent has authority over. 

For example, as opposed to a general power of attorney—which may allow your agent to handle all of your financial transactions—a special power of attorney may only allow your agent to handle the sale of a specific piece of real estate.

Step 2. Decide what powers are springing

A "springing" power is contingent, meaning that it is not triggered until an event or other condition is satisfied. Thus, an agent cannot legally act on your behalf regarding a springing power until that event or condition occurs. 

A springing power of attorney can go into effect in the event that you become incapacitated and can no longer make decisions about important matters such as those regarding your health or finances. 

Your special power of attorney does not need to include a springing clause. If it doesn't, the power of attorney is enforceable immediately after you sign it.

Step 3. Pick an agent and a successor agent

One of the most important steps in writing a special power of attorney is to assign your agent. Your agent should be someone you trust, whether it be a close family member, friend, or professional. It is also a good idea to assign a successor agent in the event the original agent dies or is otherwise no longer able to handle your affairs.

Step 4. Note the duration and expiration date

If you want your power of attorney to only last for a certain period of time, make sure you explicitly write that in your letter. Your special power of attorney letter can state that the specific timeframe for your special power of attorney expires on a certain date, upon the occurrence of a specified event, or once a designated task has been completed.

If you want the power of attorney to last for as long as you are alive, you can create a durable power of attorney, which remains in effect even if you become incapacitated. Regardless of which type you choose, the power of attorney terminates upon your death.

Step 5. Compile the information into one document

Using all of the information you just compiled, draft the final special power of attorney letter. Use clear and unambiguous language to outline the details of each special power. You should include your full name, the full names of your agent and successor agent, and the date you created the document.

Step 6. Execute the power of attorney letter 

You typically must sign the power of attorney in the presence of a notary for the document to be legally enforceable. Some states may require additional formalities, such as witness signatures. Once the document is executed, the power of attorney is complete.

While you can definitely draft a power of attorney on your own, you can also enlist the help of a professional if you have any doubts about the process. An attorney can review the document to make sure it contains the required information and is in the correct format. 

Step 7. Distribute copies

Once you have executed your special power of attorney, you can create copies of the document and distribute them to all relevant parties, which can include your agent and any institutions involved (such as your bank or real estate agent). Be sure to keep the original special power of attorney document in a safe place. 

Do I need a lawyer to write a special power of attorney letter?

While not required, getting legal guidance can be a good idea as special powers of attorney can be complex. You can contact an attorney for help with your special power of attorney letter, or use an attorney-supported online service to create a power of attorney document. 

FAQs 

Can I revoke a special power of attorney?

Yes, you can revoke a special power of attorney at any time. 

Can I appoint a family member as my agent?

Yes, you can appoint a family member as your agent. The key when appointing a special power of attorney agent is choosing someone you trust to help you manage your affairs. 

Can I create a special power of attorney for someone living in another state or country?

You should check the laws that apply to the location where you want the special power of attorney to be valid. Most states will honor a special power of attorney from other states, but it’s important to research state laws to confirm the document is recognized in different jurisdictions. 

If you want to create a special power of attorney from abroad, you may need to sign the power of attorney form in front of a notarizing official.

Consulting with an attorney can help ensure your special power of attorney meets the legal requirements for the state or country where you want the document to be effective.

Does the special POA remain valid if the principal becomes incapacitated?

If a special power of attorney is durable, it can remain valid if the principal becomes incapacitated. Otherwise, a special power of attorney terminates in the event that the principal loses the ability to make decisions.