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A North Carolina power of attorney is a legal document that acts as the authorization for an individual, referred to as an agent or attorney-in-fact, to make financial decisions, healthcare decisions, real estate decisions, or estate decisions on behalf of the individual granting authority. A North Carolina POA is most often used during the estate planning process, but there are other times when it is a useful tool.
Quick Reference:
The person granting permission is referred to as the principal, donor, or grantor.
The person receiving authorization is referred to as the agent or attorney-in-fact.
A North Carolina power of attorney must comply with the North Carolina Uniform Power of Attorney Act, Chapter 32A of the North Carolina General Statutes. These statutes specifically outline the parameters of a legally enforceable power of attorney and ensures that the form, as well as its duties, are protected under the law. Here are some of the state’s power of attorney requirements:
The principal can specify which powers the agent can and cannot exercise on their behalf. The principal may also revoke (terminate) the power of attorney. Additionally, the power of attorney is terminated when:
There are several reasons why someone would use a North Carolina power of attorney to give someone else the ability to make decisions related to their tangible personal property, financial institution transactions, tax matters, or their well-being. Some of those reasons include:
Each person’s needs for a power of attorney can vary. There are different types of powers of attorney available. Before choosing one, seek legal advice to determine which is best for your needs as well as to ask how to properly revoke the document should it become necessary. Here are the most common North Carolina power of attorney forms.
General Power of Attorney
A general power of attorney grants a single individual to handle matters on behalf of the principal.
Durable Power of Attorney
A durable power of attorney is an "extended version" of a general power of attorney because it goes beyond the parameters of a general power of attorney.
Limited Power of Attorney
A limited power of attorney, also known as a special power of attorney, grants limited power to whatever the principal specifies.
Healthcare Power of Attorney
A healthcare power of attorney allows the agent to make medical decisions on behalf of the principal.
Minor Child Power of Attorney
A minor child power of attorney allows a parent or guardian to grant decision-making rights over their child to a temporary guardian in the event that the parent or guardian may not be present during a medical emergency.
Real Estate Power of Attorney
A real estate power of attorney grants power to the agent to buy, sell, and manage real estate transactions on the principal's behalf.
Tax Power of Attorney
A tax power of attorney, officially known in North Carolina as Form Gen-58, allows the agent who is usually a qualified individual such as an accountant, to prepare and submit tax information to the North Carolina Department of Revenue on behalf of the principal.
Vehicle Power of Attorney
A vehicle power of attorney, known as Form MVR 63, allows the agent to buy, sell, and handle the necessary paperwork with the North Carolina Department of Motor Vehicles on the principal's behalf.
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