![]() ![]() Maryland law sets forth four specific requirements for an effective Maryland power of attorney (i) the power of attorney must be in writing, (ii) it must be signed by the person establishing the power of attorney, (iii) it must be acknowledged in the presence of a notary public, and (ii) it must be witnessed by at least two adult witnesses. Requirements for a Valid Power of Attorney With this new legislation in place, residents of Maryland were armed with a powerful document that could be easily used in a variety of situations with very little resistance. Additionally, the new law ensured that copies of a power of attorney would be treated with the same legal significance as an original. Among other things, this Act established a Form Maryland Power of Attorney that financial institutions were required to acknowledge or would otherwise be liable for the damages and costs resulting any delay or refusal. Efforts were made for a number of years to get legislation passed to govern these documents and, finally, in 2010, Maryland established the Maryland Power of Attorney Act. Due to a concern over misconduct and forgery, many banks and financial institutions maintained their own requirements and procedures for utilizing a power of attorney, which often led to significant delay in their review or even outright refusal to honor the document. Often times a party to the transaction may be unable to attend settlement and, alternatively, will appoint an agent to execute the closing documents on his or her behalf through the use of a specific power of attorney that is limited to actions with respect to that particular transaction.įor many years, the laws governing powers of attorney were vague causing individuals to face a number of challenges when trying to use a valid power of attorney. ![]() A great example would be the use of a specific power of attorney in a real estate transaction. On the other hand, a specific power of attorney places particular limits on what the agent can do on behalf of the principal. General powers of attorney are most commonly used as part of an estate plan in order to account for the management of financial matters in the event of incapacity. A general power of attorney gives broad authorizations to the agent to deal with a variety of financial matters ranging from access to bank accounts to the transfer of assets into a trust. There are two basic types of powers of attorney: general and specific. ![]() The utility of a power of attorney often depends on the powers granted to the agent under the terms of the document. Whether it be in the short term while an individual is out of the country or for an extended period due to physical or mental incapacity, powers of attorney can be an incredible tool to help individuals manage their property and ensure their well-being. A power of attorney is a legal instrument that delegates an individual’s legal authority to a trusted person to make decisions on his or her behalf. Ensuring that your assets are properly managed and preserved in the event that you are no longer able to do so yourself can be a major concern. ![]()
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