Powers of Attorney

Background
A power of attorney is a document in which you give someone legal authority to act for you. It allows people who are concerned that they will not be able to act in their own behalf to designate a trusted person to act for them. The person who grants the power of attorney is known as the principal and the person given the power is known as the agent or attorney-in-fact. The power of attorney defines the limits of the power that the agent is giving to the agent. The power of attorney does not take away the principal’s power to act; it only gives the agents the power to also act for the principal.

General v. Limited Powers of Attorney
A power of attorney can be either general or limited. A general power of attorney gives the agent the power and authority to act for the principal in all business and personal matters. This usually includes opening and closing bank accounts, buying and selling stock, accessing safe deposit boxes, taking out loans, purchasing real estate, suing, and entering into a contract in the name of the principal.

A limited power of attorney grants to the agent only the powers defined in the document. Limited powers of attorney are often used to give agents the power to act in financial matters, to manage real estate, or to make healthcare decisions for the principal when the principal loses the ability to make decisions for himself. Medical powers of attorney are called advance directives.

The power of attorney may be limited either by the scope of powers that the agent gets, or by time.  Powers should be as specifically defined as possible, both to protect the principal and to make it more likely that the people and businesses that the agent works with for the principal will agree to work with the agent.

Who May Create a Power of Attorney
To create a power of attorney, an individual must:

• Be at least 18 years old;
• Intend to give the power to the person designated in the document; and
• Be mentally competent, which means
• Able to understands the document;
• Understand which powers are being granted; and
• Understand which property is affected by the power granted.

Written Powers of Attorney Are Assumed to be Durable
In Maryland, a written power of attorney is assumed to be a durable power of attorney unless the document says it isn’t. Durable powers of attorney do not end when the principal becomes disabled. A conventional power of attorney ends when the principal becomes too disabled to make decisions for himself. 
Md. Estates & Trusts § 13-601

When Power of Attorney is Created
Normally, a power of attorney is created immediately when the principal signs the document.  However, a springing power of attorney gives the agent the power to act for the principal only after a certain event, such as when the principal becomes disabled. The wording of the document must be very specific so that there is no question about what counts as an event that matches the requirements of the power of attorney.  

Medical Powers of Attorney (Advanced Directives)
Any competent person may create a power of attorney to give someone the power to make healthcare decisions for him in case something happens. These documents are called advanced directives. The Maryland Health Care Decision Act governs advance directives.

Under the Maryland Health Care Decision Act (Md.Health-General §§ 5-601 et seq.) the person the principal appoints to make healthcare decisions is called a healthcare agent. An owner, operator or employee of the healthcare facility providing care to the principal cannot usually serve as the healthcare agent unless the person was selected as the healthcare agent before the facility began care of the principal.
Md. Health- General § 5-601, Md. Health- General § 5-602

An advance directive can be either a written or electronic document. It must be signed, dated and witnessed by two witnesses. It is the responsibility of the person who wants his advance directive honored to tell his doctor about it. Anyone except the healthcare agent may serve as a witness. The directive goes into effect when the person becomes too sick to make a decision about his care. If the patient is unconscious or not able to communicate then the attending doctor may make the determination that the advance directive is in effect. Otherwise two doctors must certify that the patient is not capable of making an informed decision about care.
Md. Health- General § 5-602

Maryland Health-General § 5-603 provides a sample form for an advanced directive. The form includes provisions for selecting a health care agent, selecting powers of the agent, making a living will and preferences for treatment, and organ donation. 

Ending the Power of Attorney
A power of attorney may end in a number of ways. All powers of attorney end when the principal dies. The power may expire if the document sets a time limit on the power. Also, the principal may choose to cancel (revoke) the power. The principal may revoke the power by tearing up the document, signing a document revoking the power, or signing a new document giving the power to someone else. Just as the principal needs to be competent to give the power to the agent, the principal needs to be competent when taking it away. The death, disability, or incompetence of a principal does not revoke the power unless the agent knows about what has happened. Any actions that the agent takes in good faith until he learns of the principal’s condition are binding.
Md. Estates & Trusts § 13-602

List of Helpful Books
In addition to the books listed in the Maryland State Law Library's power of attorney reference guide, simple forms for creating general and limited powers of attorney are in:

Margaret C. Jasper, More Everyday Legal Forms (2d ed. 2001).