A North Carolina Power of Attorney form is an agreement that grants an agent the legal authority to act on behalf of the principal in various situations.
A power of attorney NC comes into play in situations where the principal is physically disabled, mentally incapacitated, or otherwise not able to make decisions for themselves, as well as in the event the principal is not readily available to sign off on financial or legal transactions. The agent can make decisions regarding financial matters, health care, or property and asset management on behalf of the principal holder.
State laws govern the power of attorney in North Carolina. Still, it may vary depending on the circumstances surrounding its use (e.g., whether or not it is a non-durable or Durable power of attorney). The form becomes effective upon being signed by all the necessary parties and its execution by the principal. However, the principal may choose to make the POA a non-durable power of attorney by specifying in the form that it will expire upon their incapacitation.
Types of Power of Attorney
There are several variations of power of attorney in North Carolina. The power of attorney that a party chooses to execute will depend on their unique circumstances and preference.
The different types of North Carolina POA include:
North Carolina POA Requirements
While North Carolina does not have formal requirements for who may prepare or sign a power of attorney form, some pre-requisites may need to be met before anyone can attempt to obtain and execute a power of attorney validly. First, the principal must be physically and mentally capable of making decisions and exercising control over their affairs. Secondly, the principal must be able to provide written authorization for a power of attorney, and the agent must qualify as a competent attorney-in-fact to act on the principal’s behalf.
Finally, to execute an NC POA form, the following additional requirements must also be met:
- The POA form must be duly signed by the principal, or another individual, in the principal’s conscious presence.
- The principal must acknowledge their signature before a notary public, or another individual authorized by law to take acknowledgments.
- The POA form must be executed in the presence of two disinterested witnesses who must also sign the completed POA document.
- The POA form should also be signed by the agent, below their own sworn testimony of their identity, position, and authority to make empowered decisions on behalf of the principal.
- The North Carolina power of attorney form must contain essential information such as the identities and contact information of the principal and the agent. The principal must also specify the type of powers granted to the agent, when the agent’s powers will go into effect, as well as an expiration date (if they wish to give their agent non-durable power of attorney).
- Given that the principal wishes to appoint multiple co-agents to act on their behalf, they should specify in the form whether they will act together in making these decisions or if they will have separate powers.
- Finally, the agent should be a legal adult or financial institution with trust powers, a registered business place within the state of North Carolina that has the authority to carry out trust business. The agent should also be someone that the principal fully trusts to act in their best interests.
How to get a North Carolina Power of Attorney?
Individuals residing in North Carolina that wish to obtain a power of attorney may do so by first identifying and selecting someone they trust to handle their affairs if and when they cannot do so themselves. Afterward, the person granting these powers must decide what decisions or actions the agent will perform on their behalf and in what circumstances. The third step of getting a power of attorney involves executing the actual document.
The POA form must be prepared and completed following the stipulated North Carolina POA requirements and statutes to be valid. Powers of attorney related to property management and financial affairs in North Carolina are regulated by the North Carolina Uniform Power of Attorney Act. On the other hand, NC POAs of medical care decisions are regulated by the North Carolina General Statutes Chapter 32A, Article 3.
Frequently Asked Questions
A power of attorney may prove helpful in a variety of circumstances. For example, an individual in the military might execute a POA before being deployed overseas to ensure that someone is available to act on their behalf if they become incapacitated. Individuals who travel a lot may create a POA and name a trusted agent who can handle their personal affairs and business transactions if they are unavailable to act independently. Older people and individuals suffering from severe or long-term health conditions may also execute a power of attorney to make sure that someone else is available to make health care and financial decisions on their behalf if they cannot make these decisions for themselves due to physical or mental incapacity.
Any person that the principal knows, and trusts can serve as their agent, but it is often recommended that a housekeeper, family member, or friend be appointed agent to act on their behalf. It is even possible for multiple persons to be named co-agents and work together to make decisions on behalf of the principal. First, however, the principal must select a trusted individual(s) who will always act in their best interests.
A POA is legally binding under North Carolina Law until the agent executes a statement of resignation or revoked by the principal. Therefore, if someone other than the agent knows that a power of attorney has been granted and still wishes to exert control over the principal’s affairs, they must first convince the principal to revoke their POA. The only other way for an outsider to take control from an agent appointed under a POA form is to obtain court authorization.