Instrument: Power of attorney (POA) for financial matters

What is it for?
The POA for finances allows any person age 18 or older (the “principal”) to appoint one agent or two or more coagents to make financial decisions on his or her behalf.

What does it do?
The POA for financial matters grants an agent the authority to make decisions only about the principal’s property. A principal needs to execute a DPOA for health care decisions to appoint an agent for health matters.

In doing so, per Nev. Rev. Stat. § 162A.310, an agent must act in good faith, only within the scope of authority specified in the POA for finances, and in accordance with the principal’s reasonable expectations. An agent also must act loyally, avoid conflicts of interest, and act with care, competence, and diligence consistent with a fiduciary duty. An agent is not liable if the principal’s property declines as a result of the agent’s actions absent a breach of this duty.

The POA for financial matters must be accepted by third parties, unless they have a good faith reason for refusing to do so, such as actual knowledge that another person has reported to adult protective services that the agent may be abusing, neglecting, or exploiting the principal.

How does one make it?
To execute a POA for financial matters the principal must sign the POA form. Alternatively, another individual, at the principal’s direction and in the principal’s presence, may sign the principal’s name on the form.

For principals residing in a hospital, residential facility for groups, facility for skilled nursing or home for individual residential care, a certification of competency by an advanced practice registered nurse, a physician, psychiatrist or licensed psychologist is also required.

When does it come into effect?
The POA for financial matters is effective immediately when executed unless the principal states a future date or event that will activate the powers expressed in the form. The later kind of POA is often called a “springing” POA because it “springs” into effect after a specific condition is met. For example, a POA for financial matters may become effective only after the principal has determined incapacitated by an advanced practice registered nurse, a physician, psychiatrist or licensed psychologist. For springing POAs, the POA may specify an individual responsible for determining whether a triggering event has occurred.

How long does it last?
The POA for financial matters generally lasts until either the principal revokes it; the principal dies; the agent dies or becomes incapacitated or resigns; or upon the DPOA’s termination date, if one is provided.

How does one end it?
The principal may revoke and invalidate a POA for financial matters in the same way as an SDMA, namely, by destroying the instrument or directing another in the presence of the adult with a functional impairment to do so. An adult may also either state verbally in the presence of two witnesses or in a signed and dated writing that he or she wishes to revoke the POA.

Also, a subsequent POA for financial matters automatically revokes a previous one.

What does an example look like?
There is a general statutory form. Nev. Rev. Stat. Ann. § 162A.620

What else should one know?
Nevada’s POA is based on the Uniform Power of Attorney Act.

Last updated April 2021

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