Texas Power of Attorney Form (also known as POA) is a legal agreement that grants someone the authority to make crucial decisions for the other person with their consent.
The principal (who is handing over power) can hire an agent or representative (or attorney-in-fact) to act on their behalf and make decisions related to their property, health, or finance.
In other words, the Texas POA form contains all the necessary information required for a power of attorney to be effective.
Texas has its statutory laws on how a power of attorney form operates. However, unlike in some states, you can draft your power of attorney without hiring a lawyer. Thereby saving time and money. So long you meet the minimum requirements for Texas’ laws related to the power of attorney form, you can handle the rest of the process by yourself and your document will be legally binding.
For example, the Texas durable power of attorney form is the type of agreement that is bound to continue, even when the client is no longer in a stable state to make decisions. For example, say you’re rushed into ICU after an accident and unconscious, a Texas durable POA form will be used to handle the situation. Since you can’t make decisions on your own when unconscious, your agent represents you.
But according to the laws, if your Texas POA is not durable, your agent cannot stand in for you if you become unconscious. So, suppose you want to make a POA durable in Texas. In that case, it must be clearly stated that the agreement isn’t affected by any disabilities, immobilization, or something similar in the future.
Uses of Texas POA
Generally, a Texas POA form is used for two primary reasons. First, a POA is used when you are unavailable to approve a particular process, whether financial or otherwise. For example, if you are out of town and are expected to sign a particular document in person, you can initiate a POA. By doing so, another person can sign the document in your stead.
Alternatively, a POA will come in handy if you or your family member becomes mentally or physically displaced and aren’t considered fit enough to handle sensitive matters like finances, personal healthcare, etc.
Types of POA in Texas
There are many types of POAs that are admissible in Texas. And each one is unique in terms of the sort of power conferred to an agent by a client. There also vary in terms of the distinct circumstances for which the power can be exercised by agents.
In other words, as the principal, the type of POA you need depends on your condition and the type of action you want your agent you take on your behalf. For example, you may want an agent to oversee your business in Texas because you are usually out of town.
If you are wondering which type of POA is the most suitable for you, here is a list of the different types of POA in Texas:
Durable (Statutory) Power of Attorney
The Texas Durable (Statutory) POA is the type that makes your agent’s access to your finances limitless. With this type of POA, your chosen representative will continue to have access to your funds or assets even if you become incapacitated or dead unless it’s stated otherwise or revoked before your medical situation.
So, it is essential that when entering this kind of agreement, you ensure your representative or agent is someone you can trust, preferably a family member. And the signing requirement for this POA is the notary public (§ 751.0021).
Download: Microsoft Word (.docx)
General (Financial) Power of Attorney
Like the durable POA, this kind of Texas POA form also allows for broad access to your finances by your representative. The difference, however, is that with the general POA, if you become ill and unavailable to follow up on the processes, the agreement gets automatically terminated. The notary public is also the signing requirement (§ 751.0021) for this POA.
Download: Microsoft Word (.docx)
Limited Power of Attorney
As the name implies, the Texas limited POA covers a specific number of things that your agent or representative can sanction. In other words, you can tailor this kind of POA to meet your specific needs and limit financial transactions that your agent can do.
Similarly, the notary public is a signing requirement (§ 751.0021) for this POA.
Download: Microsoft Word (.docx)
Medical Power of Attorney
The Texas medical POA form permits you to entrust your medical care in the hands of a loved one. This designated person has the authority to make decisions related to your health and other medical issues even when you cannot communicate what you want.
With this kind of agreement, the principal can give their agent limited or unlimited power to make any decision, including deciding to end the principal’s life. And as for the signing requirement, you need a notary public or two witnesses (§ 166.154) .
Download: Microsoft Word (.docx)
Minor (Child) Power of Attorney
The Texas minor (child) POA is used by parents or guardians who would like to put their children in the care of somebody else. Usually, this is done if there’s the possibility of the parent getting incapacitated. As a parent, you are expected to fill out the Designation of Guardian for Incapacitation form as part of the process.
This POA also needs to be notarized and signed by at least one parent in the presence of two witnesses.
Download: Microsoft Word (.docx)
Real Estate Power of Attorney
With this POA form, you can delegate negotiations and transactions about your properties to an agent when you are ill or absent in Texas. In other words, the agent has the authority to decide on selling, leasing, repairs, mortgage, and eviction of tenants from your property.
However, the agent’s power is not unlimited, as you can clearly define the extent of their representational powers in this POA. The Texas POA also requires notarization, and as the principal, you can revoke the document at any time. The document must be signed before a notary public (§ 751.0021).
Download: Microsoft Word (.docx)
Revocation of Power of Attorney
Like any contract, a principal or client can revoke a POA and terminate its agreements whenever they wish. In this case, if you are the principal, you’re withdrawing any power you have given to a representative to act in your stead. You will need to inform your agent of the termination officially, regardless of your reasons for wanting to terminate the agreement.
Also, your agent must sign the document to ensure that there is no miscommunication or question your position and that they can no longer act with your authority.
While there are no specific statutory requirements for Texas revocation of POA form, it is still recommended that you notarize the document.
Download: Microsoft Word (.docx)
Tax Power of Attorney (Form 86-113)
Doing tax can be a headache, so you’ll need this form if you want to assign your taxes to a professional. Once this agreement is sealed, the representative can stand for you in tax matters before the Texas Comptroller of Public Accounts.
With Texas tax POA form, your representative will have access to all your tax information and be able to make filings and other related decisions. So, you want to ensure you hire a professional and someone you can trust.
Only the agent is required to sign this document.
Download: Microsoft Word (.docx)
Vehicle Power of Attorney (Form VTR-271)
This form is also known as the “Power of Attorney to Transfer Motor Vehicle” in Texas. And it is used when you want someone to handle your vehicle issues with the Texas Department of Motor Vehicles. For example, your representative can transfer titles to a motor vehicle using your name.
This POA is limited to only the transfer of motor vehicle titles. Also, only the vehicle owner is required to sign this form.
Download: Microsoft Word (.docx)
Springing Power of Attorney
This POA is similar to the Durable POA. It passes authority to an agent to act on behalf of a principal when the principal is sick or incapacitated. However, with the Texas springing POA form, the agent does not have any authority, nor can they represent the principal until the disability or incapacitation of the principal is confirmed. Therefore, the agreement does not take effect immediately.
Download: Microsoft Word (.docx)
Legal Requirements
As long as you are an adult, you are eligible to create or enter into a power of attorney in Texas. A Texas POA document must include the following information:
- The principal’s name and signature
- The agent(s)’ name
- The agreement date
- A description of the power(s) granted
- The duration of the agreement
In addition, a notary public must sign the POA document and you should record POAs for real-estate matters with the county clerk no later than 30 days after it has been signed. Your POA must also include the statements below:
1. “This power of attorney is not affected by subsequent disability or incapacity of the principal.” This rule makes the power of attorney durable and means the agreement is effective immediately.
2. “This power of attorney becomes effective on the disability or incapacity of the principal.” This means that the POA can be durable or springing. However, in this case, the agent will not have any authority until the principal is sick or incapacitated.
Finally, the principal must sign the POA (and sometimes, the agent) before a notary public in Texas or any other state to “take acknowledgments to deeds of conveyance” and administer oaths.
Rights and Limitations of POA in Texas
As stated earlier, a POA is an agreement that can cover virtually all aspects of the life of a principal, including real estate, finances, guardianship, medical and healthcare decisions, gifts, asset management, etc.
Once a principal passes on the authority to their representative, the latter can make decisions on behalf of the principal. In essence, the representative should be someone the principal can trust wholeheartedly, and the principal can add limitations to prevent the absolute authority of the representative.
How to Get Power of Attorney in Texas?
In Texas, there are three significant ways to obtain a POA. They include:
Sound mind
Before a power of attorney is approved, it must be confirmed that the principal is of a sound mind and have a clear understanding of their rights, privileges, and the sort of decisions that can be made for them through the contract, even if the representative is their child. Subsequently, all the stakeholders must adhere to the requirements of the Texas estates code.
Living will
Usually, when a person is old or incapacitated, they would have stated who they want as their representative in their living will. In this case, there is no need for any further actions. However, it is crucial that as a child, you help ensure your parent’s will is set up correctly and at a time when they are available to make adjustments.
Conservatorship
If your parent is already incapacitated and has left behind no living will, you’ll need to appear before a judge to get a conservatorship status. This process requires a lot of time and court appearances, so it is vital to have the right attorney by your side.
Key Takeaways
- A power of attorney is a sensitive legal agreement that empowers another person to decide on your behalf or your aged parents.
- In Texas, some statutory laws and processes must be strictly followed for a POA to be binding.
- There are different types of POAs that give either limited or unlimited authority to a representative in the case of unavailability or incapacitation.
- Ensure you are choosing a power of attorney in Texas that is most suitable for you and your family by consulting with a legal expert for advice.
- If you’re choosing a representative, ensure they are someone you can trust with your life and asset management.
