Delaware 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 (POA). 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. The person who creates the POA is called the "principal."

What Types of Powers of Attorney Are Available in Delaware?

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

• a financial POA (called a "personal power of attorney" in Delaware), which allows someone to handle your financial or business matters, and
• a health care POA, which allows someone to make medical decisions on your behalf. (In Delaware, this health care POA is combined with a living will into one document called an "advance health care directive.")

In most estate plans, these POAs are "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 Delaware.

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

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

Mental Capacity for Creating a POA

The person making a power of attorney must be of sound mind. The exact contours of this mental capacity requirement are open to interpretation by Delaware courts. If you're helping someone make a POA and have questions about the person's mental capacity, you should consult an attorney.

Notarization and Witnessing Requirement

To make a POA in Delaware, you must sign in the presence of both a notary public and an adult witness. The witness must not be:

• related to you by blood, marriage, or adoption, or
• entitled to inherit property under your will or trust.

(Del. Code tit. 12, § 49A-105 (2024).)

Signed Notice

While it's not strictly required, it's best to include a signed notice at the beginning of your POA. This notice helps ensure that you understand what you're doing when you create a POA. The exact language for this notice is set out in Delaware's statute. (Del. Code tit. 12, § 49A-105 (2024).)

If there's no signed notice and a third party (like a bank) takes issue with your agent's authority to act for you, your agent will have to take extra steps to prove your POA is valid.

Agent Signature

A handful of states, including Delaware, also require the agent to sign a certification and attach it to the POA. This extra step helps ensure that your agent understands the responsibilities of the role. However, your agent need not do this until it's time to actually use the POA. Sample language for this agent certification can be found in the Delaware statutes. (Del. Code tit. 12, § 49A-105 (2024).)

Steps for Making a Financial Power of Attorney in Delaware

1. Create the POA Using a Form, DIY Program, or Attorney

Delaware has a statutory form for a financial POA that you can use. The form allows you to designate an agent (and co-agents and successor agents) and the powers you're giving your agent. (Del. Code tit. 12, § 49A-301 (2024).)

Some private companies also offer forms or templates with blanks that you can fill out to create your POA. For a more user-friendly experience, try Nolo's 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 a Delaware lawyer to create a POA for you, though this option will cost more. Many lawyers will also 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 include selecting, from a list, each specific power you want your agent to have. These powers might include, for example, the power to act in the following categories:

• real property (real estate)
• stocks and bonds
• banks and other financial institutions
• benefits from governmental programs or civil or military service
• retirement plans, and
• taxes.

In Delaware, if you want the power of attorney to be durable (so that it remains effective after your incapacitation), the document must explicitly state so. Delaware's power of attorney statute suggests wording such as "This power of attorney shall not be affected by the subsequent incapacity of the principal." (Del. Code tit. 12, § 49A-104 (2024).)

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

As mentioned above, you can't simply sign the document and call it a day. In Delaware, you must notarize the POA and have it witnessed by someone who fits the requirements set out in Delaware law. (See above.)

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 Attorney-in-Fact

You should also give a copy of the power of attorney to your attorney-in-fact so that your attorney-in-fact is familiar with the contents of the document.

5. File a Copy With the Recorder of Deeds

If you granted the power to deal with real estate to your attorney-in-fact, you should also file a copy of your POA in the land records office (called the recorder of deeds in Delaware) in the county where you own real estate. This will allow the recorder of deeds to recognize your attorney-in-fact's authority if your attorney-in-fact 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.

It's also worth noting that Delaware requires an attorney-in-fact or agent to sign a specific statement, called an "agent's certification" (discussed above), before the attorney-in-fact starts exercising the powers granted in the POA. The exact words of this statement are set out in Delaware's statute. The attorney-in-fact essentially promises to do only what's allowed by the POA, keep records of transactions, and act in good faith.

Who Can Be Named an Attorney-in-Fact (Agent) in Delaware?

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

Delaware 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. (Del. Code tit. 12, § 49A-111 (2024).)

When Does My Durable Financial POA Take Effect?

Your POA should state when it takes effect. It's common for the POA to become effective immediately. In Delaware, it's also possible to create a condition that must be satisfied before the POA becomes effective—such as a doctor declaring that you're incapacitated—but there are many reasons why this type of "springing" power of attorney isn't usually advised. (Del. Code tit. 12, § 49A-109 (2024).)

When Does My Financial Power of Attorney End?

Any power of attorney automatically ends at the principal's death. Your durable POA also will end if:

• You revoke it. As long as you're mentally competent, you can revoke your document at any time.
• You become incapacitated, and your POA isn't durable. Remember that a Delaware POA isn't considered durable unless the POA specifically states that it is.
• There's a termination date. If the POA lists a termination date, it will end on that date.
• The POA's purpose is accomplished. If your POA gives authority for a specific purpose—like selling one piece of real estate—it will end after the purpose (the sale of the real estate) is accomplished.
• 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 might declare your document invalid if it concludes that you weren't mentally competent when you signed it, or that you were the victim of fraud or undue influence.

(Del. Code tit. 12, §§ 49A-104, 49A-110 (2024).)

Additionally, in Delaware, if your spouse is named as your agent in your POA, that designation automatically ends if you or your spouse files for divorce—unless your POA states otherwise. To be clear, your ex-spouse's authority to act as your agent ends, but your POA is still intact. So, if you named a successor agent, that person would become your agent instead. (Del. Code tit. 12, § 49A-110 (2024).)

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