Michigan 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 "attorney-in-fact" or "agent"—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 Michigan?

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

• a financial POA, 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. (This document goes by different names depending on your state, and in Michigan is called a "patient advocate designation.")

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 Michigan.

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

For your POA to be valid in Michigan, 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 Michigan courts. If you're helping someone make a POA and have questions about the person's mental capacity, you should consult an attorney.

Notarization or Witnessing Requirement

To make a valid POA in Michigan, you must sign it or have someone sign it for you in your presence if you can't physically sign the document. If you want the POA to be durable, you must have two witnesses or a notary public present. If you use witnesses, neither can be the person you appoint as your agent. If you have someone sign the POA for you, you must use two witnesses for the POA to be durable. (Mich. Comp. Laws § 556.205 (2024).)

It's usually best to have your POA notarized because your signature is presumed to be genuine if your POA is notarized. (Mich. Comp. Laws § 556.205 (2024).)

Signature by Attorney-in-Fact (Agent)

A handful of states, including Michigan, also requires the agent to sign an acknowledgment of responsibilities and attach it to the POA. This extra step helps ensure that your agent understands the responsibilities of the role. However, failing to sign an acknowledgment doesn't affect your agent's authority to act on your behalf. (Mich. Comp. Laws §§ 556.213, 556.402 (2024).)

Steps for Making a Financial Power of Attorney in Michigan

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

Michigan 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. (Mich. Comp. Laws § 556.401 (2024).)

Some private companies 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 use WillMaker to make a will or living trust.) Or you can hire a Michigan lawyer to create a POA for you, though it will cost more. 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 include either granting your attorney-in-fact comprehensive powers or explicitly naming the specific powers you want your attorney-in-fact to have. For example, you might choose to grant your attorney-in-fact the power to:

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

In Michigan, your power of attorney is automatically durable (meaning that it remains effective after your incapacitation) if it's properly witnessed or notarized—unless the document explicitly states otherwise. (Mich. Comp. Laws §§ 556.204, 556.205 (2024).)

2. Sign the POA in the Presence of a Notary Public or Two Witnesses

As mentioned above, you can't simply sign the document and call it a day. In Michigan, you must notarize the POA or have it witnessed by two people. It's usually best to choose notarization. (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 agent might need the original POA to act on your behalf.

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

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. It's also worth noting that Michigan requires an attorney-in-fact or agent to sign a specific statement before the attorney-in-fact starts exercising the powers in the POA (see above).

5. File a Copy With the Register 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 register of deeds in Michigan) in the county where you own real estate. This will allow the register 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 attorney-in-fact might need to deal with in the future. This step might eliminate some hassles if your attorney-in-fact 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 Attorney-in-Fact (Agent) in Michigan?

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?

Michigan 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. (Mich. Comp. Laws § 556.211 (2024).)

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 or upon a future event. It's 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. (Mich. Comp. Laws § 556.209 (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. But remember that a properly witnessed or notarized POA is considered durable unless the POA specifically states that it isn't.
• No agent is available. To reduce the likelihood of this happening, you can name a successor (alternate) agent in your document.
• 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.
• 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.

(Mich. Comp. Laws § 556.210 (2024).)

Additionally, in Michigan, if your spouse is named as your agent in your POA, that designation automatically ends once either of you 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. (Mich. Comp. Laws § 556.210 (2024).)

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