Power of Attorney Requirements in Texas

A power of attorney or POA can enable you to engage in financial transactions when you can't be present to sign documents. It can also enable someone you trust to handle your finances should you become disabled or incapacitated.

Texas has separate power of attorney requirements for financial matters and for health care.

Power of attorney basics

A power of attorney is a legal document whereby one person, called the "principal," gives another person, called the "agent" or the "attorney in fact," the authority to take certain actions on behalf of the principal. To understand powers of attorney, it will be helpful to know a few basic terms:

• General power of attorney. This gives the agent authority to act in a broad range of matters.
• Limited or special power of attorney. This gives the agent authority to act in a limited way, such as to engage in a specific transaction or for a limited period of time.
• Durable power of attorney. This continues in effect after the principal becomes mentally or physically disabled or incapacitated.
• Springing power of attorney. This gives authority to the agent only if and when the principal becomes disabled or incapacitated. By its very nature, a springing power of attorney is also a durable power of attorney.
• Medical power of attorney. This gives the agent the authority to make medical treatment decisions for you if you become mentally or physically unable to make your own decisions. By its very nature, a medical power of attorney is both durable and springing.

Uses for a POA

There are two primary reasons for having a financial power of attorney:

1. You need to engage in some type of financial activity but can't be present to do so. For example, you need to sign a deed to transfer title to the property but will be out of the country when that needs to be done. You can execute a power of attorney to allow someone else to sign the document on your behalf.
2. You wish to give someone you trust the authority to handle your financial matters in the event you become mentally or physically disabled or incapacitated.

Legal requirements for Texas power of attorney

Any adult may create a power of attorney in Texas. The document must include one of the following statements:

1. "This power of attorney is not affected by subsequent disability or incapacity of the principal." This makes it a durable power of attorney and gives the agent immediate authority.
2. "This power of attorney becomes effective on the disability or incapacity of the principal." This makes it a springing (and durable) POA, but the agent will not have authority unless the principal becomes disabled or incapacitated.

The POA must be dated and signed by the principal before a notary public or other person authorized in Texas or any other state to "take acknowledgments to deeds of conveyance" and administer oaths.

How to obtain the proper power of attorney form

Obtaining a power of attorney in Texas is fairly easy because the Texas legislature created a form titled Statutory Durable Power of Attorney. It may be found in the Texas Estates Code, at section 752.051. This form lists various types of powers, with a blank line before each power. To give your agent all of the listed powers, you can sign your initials on the line before the last item (making it a general POA). If you don't want to give your agent all of the powers, you need to sign your initials before each power you want your agent to have (making it a limited POA).

 The Medical Power of Attorney Designation of Health Care Agent may be found in the Texas Health and Safety Code, at section 166.164. Using this form will assure compliance with Texas law.

By the using correct official form and reading the instructions and information it contains, you can ensure you're in compliance with the legal requirements for a power of attorney in Texas. The form also explains the duties of the agent. When you use the official form, it is more likely to be recognized by those with whom your agent will be conducting business and can increase the likelihood it will be accepted.

Texas power of attorney requirements FAQs

What is a power of attorney and why would I need one in Texas?

A power of attorney is a legal document that gives an agent, also known as an attorney-in-fact, the authority to handle legal or financial matters on the principal's behalf. There are a few different types to address different situations.

What are the different types of power of attorney available in Texas?

Texas has several types of power of attorney, each designed for different situations:

• General power of attorney gives the agent authority to act in a broad range of matters.
• Limited or special power of attorney gives the agent authority to act in a limited way, such as to engage in a specific transaction or for an established period of time.
• Durable power of attorney continues in effect after the principal becomes mentally or physically disabled or incapacitated.
• Springing power of attorney gives authority to the agent only if and when the principal becomes disabled or incapacitated. 
• Medical power of attorney gives the agent the authority to make medical treatment decisions for you if you become mentally or physically unable to make your own decisions. By its very nature, a medical power of attorney is both durable and springing.

What legal requirements must I meet to create a valid power of attorney in Texas?

You must be at least 18 years old and of sound mind when you create the power of attorney. Your chosen agent must also be a competent adult without serious criminal convictions. 

The most important requirement is including one of two specific sentences in your document. 

• For a power of attorney that works right away and continues if you become incapacitated, you must include: "This power of attorney is not affected by subsequent disability or incapacity of the principal." 
• For one that only starts working when you become incapacitated, you must write: "This power of attorney becomes effective on the disability or incapacity of the principal." 

You must sign the document in front of a notary public. If you're creating a medical power of attorney, you also need two witnesses who aren't connected to your healthcare providers.

Where can I get the proper power of attorney forms for Texas?

Texas provides official forms. For financial matters, use the Statutory Durable Power of Attorney form found in Texas Estates Code, section 752.051. For healthcare decisions, use the medical power of attorney form in Texas Health and Safety Code, section 166.164. Using the wrong form or making up your own version can cause problems later when your agent tries to use the power of attorney.

How do I properly fill out and execute a power of attorney in Texas?

Start by choosing your agent. Pick someone you trust completely, then fill in their name and contact information on the form, plus a backup person in case your first choice is unable. On the financial form, you'll see a list of powers with boxes to initial. Only initial the powers you want to give your agent. You can also add special instructions about how you want things handled. Once you've completed the form, have it notarized. For medical power of attorney, you'll also need two witnesses. Keep the original document safe and give copies to your agent, your doctor, and your bank.

What's special about medical power of attorney compared to financial power of attorney?

Medical power of attorney is automatically designed to only work when you can't make healthcare decisions for yourself. This is different from financial power of attorney, which can work immediately if you’d like. Your medical agent must follow any instructions you've written down about your healthcare wishes and cannot override things you’ve instructed, such as a Do-Not-Resuscitate order. The medical form requires two witnesses who cannot be employees of your healthcare providers. This extra protection helps ensure no one is pressuring you into signing something you don't want.

Can I cancel or change my power of attorney after I've created it?

Yes, you can cancel your power of attorney at any time, as long as you're mentally capable. It's best to put the cancellation in writing and have it notarized. Forward any changes or news of the cancellation with any institution who has it on file to help prevent your former agent from accidentally (or intentionally) using powers you've taken away.