Arizona Power of Attorney Laws

If you want someone to be able to deposit your checks at your bank, file your taxes, or even sell or mortgage your home, you can create a handy document called a power of attorney. A POA is a simple document that grants specific powers to someone you trust—called an "agent" or "attorney-in-fact"—to handle certain matters for you.

• What Types of Power of Attorneys Are Available in Arizona?
• What Are the Legal Requirements of a Financial POA in Arizona?
• Steps for Making a Financial Power of Attorney in Arizona
• Who Can Be Named an Agent in Arizona?
• When Does My Durable Financial POA Take Effect?
• When Does My Financial Power of Attorney End?

What Types of Power of Attorneys Are Available in Arizona?

You can make several different types of POAs in Arizona. In particular, many estate plans include two POAs:

• a financial POA, which allows someone to handle your financial or business matters, and
• a medical POA, which allows someone to make medical decisions on your behalf. (In Arizona, this document is called a "health care power of attorney.")

In most estate plans, these POAs are what are known as "durable" POAs, which means that they retain their effectiveness even after you're incapacitated. It's a good idea for most people to create these two documents, as they help plan for the unexpected.

To learn about other types of POAs, including non-durable (limited) and springing POAs, see What Is a Power of Attorney. Below, learn how to create a durable financial POA that is valid in Arizona.

What Are the Legal Requirements of a Financial POA in Arizona?

For your POA to be valid in Arizona, it must meet certain requirements.

Mental Capacity for Creating a POA

The person making a power of attorney must be of sound mind. In other words, at the time you make a POA, you must be "capable of understanding in a reasonable manner the nature and effect of the act of executing and granting the power of attorney." (Ariz. Rev. Stat. § 14-5506(D).) If you're helping someone make a POA and you're not sure if they meet the mental capacity requirement, you should consult a lawyer.

Notarization and Witnessing Requirement

Arizona law requires that you sign your POA in the presence of a notary public. A witness must also sign a statement before a notary. This witness cannot be:

• a person you named as an agent in the POA
• the agent's spouse
• the agent's children, or
• the notary public.

Statutory Language That Must Be in Your Document

While Arizona does not set out sample language for your entire POA in its state laws, the laws do provide some guidelines for what your document must contain. For example, your power of attorney must:

• contain language that clearly shows your intent to make a POA
• clearly identify the agent
• contain a specific statement before your signature line, and
• contain a specific witness statement.

(See Ariz. Rev. Stat. § 14-5501(D) for the exact language.)

Steps for Making a Financial Power of Attorney in Arizona

1. Create the POA Using Software or an Attorney

Some private companies offer forms or templates with blanks that you can fill out to create your POA. For a more user-friendly experience, you can try a software program like WillMaker, which guides you through a series of questions to arrive at a POA that meets your specific aims and is valid in your state. You can also hire an Arizona lawyer to create a POA for you. Many lawyers will include durable POAs as part of a more comprehensive estate plan alongside a will or living trust.

Whatever method you choose, the process of making the POA will likely include either granting your agent comprehensive powers or selecting, from a list, the specific powers you want your agent to have. For example, you might choose to grant your agent the power:

• to engage in real estate transactions
• to engage in banking and financial transactions
• to engage in retirement plan transactions
• to engage in stock, bond, and other securities transactions
• to operate a business or entity
• to receive government benefits
• to pursue tax matters
• to provide for personal and family maintenance.

In Arizona, unlike many other states, a power of attorney is not durable by default (meaning it won't remain effective after your incapacitation). To be durable, your power of attorney must include words such as, "This power of attorney is not affected by subsequent disability or incapacity of the principal or lapse of time." (Ariz. Rev. Stat. § 14-5501(B)(1).)

2. Sign the POA in the Presence of a Notary Public

As mentioned above, you can't simply sign the document and call it a day. In Arizona, you must also have your POA notarized and witnessed.

3. Store the Original POA in a Safe Place

Once you have completed the POA, store the original in a safe place that your loved ones can easily access, and let them know where to find it. (It won't do much good locked away in a safe that no one can get into.) If you become incapacitated, your attorney-in-fact might need the original POA to act on your behalf.

4. Give a Copy to Your Agent or Attorney-in-Fact

You should also give a copy of the power of attorney to your agent so that your agent is familiar with the contents of the document and can use it when needed.

5. File a Copy With the Recorder's Office

If you gave your agent the power to conduct transactions with real estate, you should also file a copy of your POA in the land records office (called the recorder's office in Arizona) in the county or counties where you own real estate. This will allow the recorder's office to recognize your agent's authority if your agent ever needs to sell, mortgage, or transfer real estate for you.

6. Consider Giving a Copy to Financial Institutions

You can also give copies of your durable financial POA to banks or other institutions that your agent might need to deal with in the future. This step might eliminate some hassles for your agent if your agent ever needs to use the POA. Banks can sometimes be finicky about accepting POAs; see Can Banks Refuse a Power of Attorney? for more details.

Who Can Be Named an Agent or Attorney-in-Fact in Arizona?

Legally speaking, you can name any competent adult to serve as your agent. But you'll want to take into account certain practical considerations, such as the person's trustworthiness and geographical location. For more on choosing agents, see What Is a Power of Attorney.

Arizona allows you to appoint co-agents who are authorized to act at the same time, but it's usually advisable to stick to just one agent to minimize potential conflicts. However, naming a "successor" agent—an alternate who will become your agent if your first choice is unavailable for any reason—is always a good idea, as it creates a backup plan.

When Does My Durable Financial POA Take Effect?

Your POA is effective immediately unless it explicitly states that it takes effect at a future date.

It's possible to create a condition that must be satisfied before the POA becomes effective—such as a doctor declaring that you are incapacitated—but there are many reasons why this type of "springing" power of attorney is not usually advised.

When Does My Financial Power of Attorney End?

Any power of attorney automatically ends at your death. A durable POA also ends if:

• You revoke it. As long as you are mentally competent, you can revoke your document at any time.
• No agent is available. To reduce the likelihood of this happening, you can name a successor (alternate) agent in your document.
• A court invalidates your document. It's rare, but a court may declare your document invalid if it concludes that you were not mentally competent when you signed it, or that you were the victim of fraud or undue influence.

For more on Arizona estate planning issues, see our section on Arizona Estate Planning.