Creating a durable power of attorney is essential for ensuring that someone you trust can manage your financial, legal, and personal affairs if you become incapacitated or unable to act on your own. Unlike a regular power of attorney, a durable POA remains in effect even if you lose mental or physical capacity, providing continuity and avoiding the need for court-appointed guardianship. It offers peace of mind, safeguards your interests, and allows your chosen agent to act swiftly and effectively in critical situations.

Ever wonder what the text of your power of attorney means? The following goes through a sample instrument clause by clause:

Introduction to Power of Attorney Document

I do hereby create this General Durable Power of Attorney under N.J.S.A. 46:2B-8.1 et seq.

This means: The person is officially creating a General Durable Power of Attorney (POA). It’s being created under the New Jersey statutes, specifically N.J.S.A. 46:2B-8.1, which governs powers of attorney in the state.

I direct that this Power of Attorney not be affected by my subsequent disability or incapacity.

This means: Even if the person becomes mentally or physically unable to make decisions later (due to illness, injury, etc.), the POA remains valid. That’s what makes it “durable” — it continues even through incapacity.

I further direct that this Power of Attorney not be affected by lapse of time.

This means: The POA doesn’t expire just because time passes. It stays in effect until the person revokes it or dies. There’s no built-in expiration date unless specifically added elsewhere. See N.J.S.A. 46:2B-8.3

This Power of Attorney shall remain in full force and effect in any jurisdiction notwithstanding that I may become physically or mentally incapacitated so that I am not able to handle my own affairs.

This reinforces: The POA works across state lines or in other jurisdictions. Again, it stays valid even if the person becomes incapacitated.

By this Power of Attorney, I hereby revoke any and all such instruments previously made by me.

This means: The person is canceling or revoking any previous powers of attorney they made before this one. This new document replaces all earlier ones.

Naming your Attorney-in-Fact or Agent

I appoint my spouse as my true and lawful attorney-in-fact (my ‘agent’).

This means: The person (called the principal) is naming their spouse to act on their behalf. The legal term for this role is attorney-in-fact, but it’s often called an agent. The agent can make decisions and take actions as allowed in the Power of Attorney.

I authorize my spouse to exercise the powers set forth below.

This means: The spouse can use the powers that will be listed later in the document (like handling finances, signing documents, managing property, etc.). The agent’s authority is limited to whatever powers are specifically described later.

If my spouse predeceases me or ceases to act for any reason, I appoint my child _____ as substitute or successor agent to serve with the same powers.

This means: If the spouse dies before the person making the POA, or for any reason can’t or won’t serve (e.g., illness, resignation, etc.), then the named child steps in as a backup agent. That child will have all the same powers the spouse would have had. The blank is where the person names their child (e.g., “John Smith” or “Emily”).

If my spouse predeceases me or ceases to act for any reason, I appoint my child _____, and my child _____, as substitute or successor agents, acting jointly or severally, to serve with the same powers.

This means: The children can act together (jointly) or individually (severally). So either one can act on their own without needing the other to sign off. This gives them flexibility to handle things more efficiently — one child can step in even if the other is unavailable. The children will have the same authority the spouse would have had with no reduction in power or limitations just because it’s a backup arrangement.

Power of Attorney Scope of Authority

I direct my agent to transact all my business and to manage all my property and affairs as completely as I myself might do if personally present.

This means: The person making the Power of Attorney (the principal) is giving their agent (usually the spouse or child named earlier) very broad authority. The agent can handle all matters—business, financial, property-related—just like the principal could if they were there in person. It’s essentially saying: “My agent can do anything I could legally do myself.” However, this language alone is insufficient in most circumstances to bestow this broad authority. More specificity is needed to describe the actual power given to the agent.

Specifically, my agent is authorized…

Real Estate Transactions

(a) To enter upon and take possession of any lands, buildings, tenements and other structures, or any part or parts thereof, (my “Real Property”) that may belong to me, or to the possession of which I may be entitled; (b) To ask, collect and receive any rents, profits, issues or income of any and all such Real Property; (c) To pay any and all taxes, charges and assessments that may be levied, assessed or imposed upon any of my Real Property; (d) To sell, lease or mortgage any Real Property and to execute and deliver any Deed, mortgage or lease, whether with or without covenants and warranties, in respect of any such Real Property, and to manage, repair, rebuild or reconstruct any buildings, houses or other structures or any part or parts thereof, that may now or hereafter be erected upon any such lands; (e) To extend, renew, replace or increase any mortgage or other security interest now or hereafter affecting any of my Real Property and/or any personal property belonging to me, and for any such purposes, to sign, seal, acknowledge and deliver any bond or note, or any extension, renewal, consolidation or apportionment agreement, or any other instrument, whether sealed or unsealed that may be useful or necessary to accomplish any of the foregoing purposes; (f) To obtain insurance of any kind, nature or description whatsoever, on any of my Real Property and/or in connection with the management, use or occupation thereof and/or any personal property belonging to me and/or in respect of the rents, issues and profits arising therefrom and to make, execute and file proof of all losses sustained or claimable thereunder, and all other instruments in and about the same, and to make, execute and deliver receipts, release of other discharges therefore, under seal or otherwise;

This provision gives the agent broad authority to manage all of the principal’s real estate. The agent may take possession of any land or buildings the principal owns or has a right to occupy, collect rents or income from such property, and pay related taxes or charges. The agent is also empowered to sell, lease, or mortgage the property, and to manage, repair, or rebuild any structures on it. Additionally, the agent may refinance or modify any existing mortgages or security interests, and sign any related legal documents. Finally, the agent is authorized to obtain insurance on the property or related assets, file insurance claims, and handle all associated paperwork, including receiving payments or issuing releases.

Banking Transactions

To conduct banking transactions as set forth in Section 2 of P.L. 1991, c.95 (C.46:2B-11), including specifically, but not limited to, the right to deal with and to perform whatever acts are necessary to exercise full and complete powers with respect to any checking, savings or other bank or money market accounts held in my name and in any banking or other institution; this shall include, but is not limited to, the power to withdraw any and all monies and the power to sign checks on my behalf as my Agent, to make, execute, endorse, accept, collect and deliver any and all bills of exchange, checks, drafts, notes and trade acceptances;

This provision authorizes the agent to handle all banking transactions on behalf of the principal, as permitted under New Jersey law (specifically Section 2 of P.L. 1991, c.95). It grants the agent full authority to manage any bank, savings, or money market accounts in the principal’s name. This includes the ability to withdraw funds, write and sign checks, and perform any necessary banking actions. The agent may also make, endorse, collect, and transfer checks, drafts, promissory notes, and other financial instruments, essentially allowing them to conduct the principal’s banking as if they were the principal themselves.

Payment of Debts

To pay all sums of money at any time or times that may hereafter be owing by me upon any bill of exchange, check, draft, note or trade acceptance made, executed, endorsed, accepted and delivered by me, or for me, and in my name, by my said agent;

This provision gives the agent the authority to pay any money the principal owes on financial instruments that were made or signed either by the principal or by the agent on the principal’s behalf. In short, it allows the agent to pay off the principal’s financial obligations, whether the debts were created directly by the principal or indirectly through actions taken by the agent under the power of attorney.

Securities

To sell, borrow, pledge, transfer, assign, vote by proxy or otherwise in any manner deal with any and all shares of stock, bonds or other securities of every nature and kind, now or hereafter belonging to me, and to make, execute and deliver an assignment of any such shares of stock, bonds or other securities, either absolutely or as collateral security;

This provision authorizes the agent to manage the principal’s investments and securities. The agent may sell, borrow against, pledge (use as collateral), transfer, assign, or vote shares of stock, bonds, or any other type of security the principal owns, now or in the future. The agent can also vote by proxy at shareholder meetings and has the power to sign and deliver any documents needed to complete these transactions—whether transferring ownership outright or using the securities as collateral for a loan.

Litigation Powers

(a) To demand, sue for, collect, recover and receive all goods, claims debts, monies, interest and demands whatsoever now due, or that hereafter be due or belonging to me (including the right to institute any action, suit or legal proceeding for the recovery of any Real Property to the possession whereof I may be entitled), and to make, execute and deliver receipts, releases or other discharges therefore, under seal or otherwise; to release or convey any dower interest or any other interest in Real Property which I may have as fully and effectually as could be released or conveyed by me; (b) To defend, settle, adjust, compound, submit to mediation and or arbitration and compromise all actions, suits, accounts, reckonings, claims and demands whatsoever that now are, or hereafter shall be, pending between me and any person, firm, association or corporation, in such manner and in all respects as my said Agent shall think fit;

This provision grants the agent broad authority to manage the principal’s legal and financial claims. Under part (a), the agent can collect money or property owed to the principal, including initiating lawsuits to recover debts or reclaim real estate. The agent can also sign receipts or releases to finalize payments or settlements, and transfer or release any ownership interests the principal may have in real estate, such as a dower or life estate interest.

Under part (b), the agent is empowered to handle legal disputes on the principal’s behalf. This includes the ability to defend against lawsuits, negotiate or settle claims, submit matters to mediation or arbitration, and generally resolve any conflicts or legal matters involving the principal, in whatever way the agent considers appropriate.

Bankruptcy Powers

To file any proof of debt, or take part in all proceedings under any Bankruptcy Act, or similar act, pursuant to the laws of the United States or any state or territory of the United States, in connection with any claim, debt, money or demand, and, in any such proceeding or proceedings, to vote in the election of any trustee of assignee and to demand, receive and accept any dividend or distribution that may be or become payable thereunder;

This provision authorizes the agent to act on the principal’s behalf in any bankruptcy or similar legal proceeding under U.S. federal or state law. The agent may file a proof of debt to assert a claim in the proceeding, participate in the case, and vote in the election of a trustee or assignee. The agent is also empowered to receive any money or property distributed in the bankruptcy, such as a dividend or payout resulting from the case. Essentially, the agent can fully represent the principal’s interests in any bankruptcy matter where the principal is a creditor.

Concerning Other Professionals

To hire accountants, attorneys, clerks, workmen and others, and to remove them, and appoint others in their place, and to pay and allow to the persons to be so employed such salaries, wages or other remuneration, as my said agent shall think fit;

This provision gives the agent the authority to hire and manage personnel on behalf of the principal. The agent can hire accountants, lawyers, office staff, laborers, or any other workers needed to assist with the principal’s affairs. The agent also has the power to fire or replace these individuals as they see fit, and to decide how much to pay them, including salaries, wages, or other forms of compensation. In short, the agent can build and manage a support team to help carry out their duties.

Contracts

To enter into, make, sign, execute and deliver, acknowledge and perform any contract, agreement, writing or thing that may in the opinion of my said agent be necessary or proper to be entered into, made or signed, sealed, executed, delivered, acknowledged or performed;

This provision gives the agent broad discretionary authority to handle contracts and legal agreements on the principal’s behalf. The agent may enter into, sign, execute, deliver, and perform any kind of contract or written agreement that they believe is necessary or appropriate. This includes any type of document or obligation, whether it’s for business, personal, or financial matters. Essentially, the agent can make binding legal commitments for the principal if they believe it serves the principal’s best interests.

Safe Deposit Boxes

To have the right to enter into any and all safe deposit boxes which may be registered in my name alone or in my name jointly with any other person or persons and to withdraw any and all items from said safe deposit boxes;

This provision gives the agent the authority to access any safe deposit box that is either solely in the principal’s name or jointly held with someone else. The agent may open the box and remove any contents, including valuables, documents, or other stored items. This power allows the agent to manage and safeguard the principal’s possessions stored in such boxes, even if they are held jointly with others.

Registration of Property

To hold property unregistered or in the name of a nominee;

This provision allows the agent to hold the principal’s property without formally registering it in the principal’s name. Instead, the property can be held in the name of a nominee—a third party who holds legal title on behalf of the principal. This can be used for reasons such as privacy, convenience, or estate planning, while still preserving the principal’s beneficial ownership of the property.

Tangible Personal Property

To acquire, purchase, sell, or exchange any and all personal property which I may now own or later acquire;

This provision authorizes the agent to buy, sell, trade, or otherwise deal with any personal property that the principal currently owns or may acquire in the future. Personal property includes movable items like vehicles, furniture, jewelry, equipment, or collectibles—essentially anything that isn’t real estate. The agent can handle these transactions as if they were the principal.

Digital Assets

To access, use and control my digital devices, including but not limited to, desktops, laptops, tablets, peripherals, storage devices, mobile telephones, smartphones, and any similar digital device which currently exists or may exist as technology develops or such comparable items as technology develops for the purpose of accessing, modifying, deleting, controlling or transferring my digital assets, and to access, manage, modify, delete, control, and transfer my digital assets, including but not limited to, my emails received, email accounts, digital music, digital photographs, digital videos, software licenses, social network accounts, file sharing accounts, financial accounts, cryptocurrency accounts and accounts using blockchain, domain registrations, DNS service accounts, web hosting accounts, tax preparation service accounts, online stores, affiliate programs, other online accounts and similar digital items which currently exist or may exist as technology develops or such comparable items as technology develops;

This provision gives the agent broad authority to access and manage the principal’s digital life, including both devices and digital assets. The agent can use, control, and make changes to computers, phones, tablets, storage devices, and other current or future digital devices. They are also authorized to access, modify, delete, or transfer digital content and online accounts. This includes emails, social media, digital media (like music and photos), cryptocurrency, online financial accounts, websites, and more. Essentially, the agent can act on the principal’s behalf in all matters involving digital property and online presence, even as technology evolves.

Signature

To sign my name on any document, whether or not indicating such signature was made pursuant to this instrument, to effect the provisions of this Power of Attorney;

This provision authorizes the agent to sign the principal’s name on any document necessary to carry out the powers granted in the Power of Attorney. The agent does not have to indicate that the signature is being made under the authority of the Power of Attorney. This gives the agent flexibility and discretion in signing documents and helps ensure that transactions or legal acts can proceed smoothly, even if the signature doesn’t explicitly reference the POA.

General Grant of Authority

Without in any way limiting the foregoing, generally to do, execute and perform any other act, deed, matter or thing whatsoever that ought to be done, executed and performed or that, in the opinion of my said agent, ought to be done, executed or performed in and about the premises, of every nature and kind whatsoever as fully and effectually as I could do if personally present; provided, however, that my agent may not execute a Will or Codicil on my behalf or in any other way make a testamentary disposition for or on my behalf.

This provision serves as a broad catch-all clause, giving the agent the authority to do anything else the principal could legally do, as long as it’s related to the matters covered by the Power of Attorney. The agent can act fully and effectively in the principal’s place, using their own judgment about what should be done. However, there is one clear limitation: the agent cannot create, sign, or alter a Will or Codicil on the principal’s behalf, and cannot make testamentary decisions (decisions about who inherits what after the principal’s death). This ensures that only the principal can make or change their own estate plan.

Catch-all clauses in Powers of Attorney are generally effective as a way to give agents broad authority to act on behalf of the principal, especially for situations not specifically listed in the document. They help fill in gaps and provide flexibility, but they cannot override legal limits—for example, they can’t authorize the agent to create a Will or change beneficiary designations without explicit language. While courts usually uphold these clauses, third parties like banks or title companies often prefer to see specific powers spelled out before accepting a POA. For best results, a POA should include both detailed powers and a catch-all provision to ensure it’s both legally sound and practically useful.

Gifting under Power of Attorney

Including a gifting provision in a Power of Attorney is very important—especially if the principal wants the agent to have flexibility in estate planning, tax planning, or Medicaid eligibility planning. Without a specific gifting provision, the agent’s authority is limited. Most state laws—including New Jersey—do not assume that an agent under a general POA can make gifts. In fact, courts and third parties often view gifting as a risky or extraordinary power that must be explicitly authorized in the document. Without clear language, the agent might:

• Be legally prohibited from making even modest gifts, including for holidays or birthdays.
• Face resistance from financial institutions or potential legal challenges.
• Risk personal liability for making unauthorized transfers.

However, allowing gifting increases the risk of unwanted gifts or asset depletion. Many families fight about gifts after the fact. Allowing gifts increases the risk of abuse, and this provision should not be included without careful thought.

Sample Provision Prohibiting Gifts

My agent may not make gifts, grants, or other transfers thereof without consideration or for inadequate consideration.

This clause restricts the agent’s authority to make gifts or transfers of the principal’s property. Specifically, it means the agent cannot give away the principal’s money or assets—or transfer them for less than fair market value—unless full and adequate consideration (payment or exchange of value) is received in return.

In other words, the agent can only sell, transfer, or deal with property in arms-length transactions, not as gifts or favors. This protects the principal’s assets from being depleted by well-intentioned or potentially abusive transfers and helps prevent unintended tax or Medicaid consequences.

If gifting is intended as part of estate planning or Medicaid planning, this restriction would need to be revised to expressly allow it and define the scope.

Sample Provision Allowing Gifts

My agent may make gifts, grants, or other transfers thereof without consideration or for inadequate consideration, either outright or in trust, to my spouse (even if my spouse is serving as agent hereunder). My agent may also make gifts, grants, or other transfers thereof without consideration, or for inadequate consideration, either outright or in trust, to a class consisting of my descendants (even if a descendant of mine is then acting as my agent), and my agent shall have sole discretion on whether to make gifts and if so, how to apportion gifts amongst the class. My agent shall act in a manner that gives due regard to my history of family and charitable giving, my personal financial condition, my estate plan (including my Will and any trusts I have created), my desire to minimize federal and state estate, gift, and other wealth transfer taxes, and the suitability of qualifying for government benefits (e.g. Medicaid).

This clause expressly authorizes the agent to make gifts or transfers of the principal’s property without receiving full value in return—either outright or through a trust. The agent may make such transfers to the principal’s spouse (even if the spouse is the agent) and to a class of the principal’s descendants (even if a descendant is serving as agent). The agent has sole discretion to decide whether to make gifts and how to divide them among the descendants.

However, this discretion is not unlimited. The clause requires the agent to consider the principal’s:

• History of giving (to family and charities),
• Current financial condition,
• Estate plan, including any Wills or trusts,
• Desire to reduce taxes (estate, gift, or transfer taxes), and
• Goals related to qualifying for government benefits, like Medicaid.

In summary, this is a carefully tailored gifting clause that gives the agent broad authority to make thoughtful and strategic gifts, consistent with the principal’s values, estate planning goals, and financial needs. It supports flexibility while providing guidance to prevent misuse.

Conflict of Interest

I am aware that conflicts of interest may arise in the exercise of authority granted by this power of attorney. Nevertheless, I intend that my agent shall, in all respects, be free to exercise the powers and discretion herein conferred as fully and unrestrictedly as if there were no such conflicting interests. With this intention in mind, I expressly exempt my agent from the adverse operation of any rule of law which might otherwise apply to my agent in the performance of his or her fiduciary duties by reason of a conflict of interest.

This provision acknowledges that the person creating the Power of Attorney (the principal) understands that conflicts of interest may occur when the agent acts on their behalf—for example, when the agent makes decisions that could also benefit themselves or other family members. Despite this, the principal makes it clear that they trust the agent and want them to be able to exercise their powers freely and fully, as if no conflict existed. To support this, the principal waives any legal rules that might otherwise restrict or penalize the agent simply because a conflict of interest is present. In essence, the principal is giving the agent broad discretion and protecting them from liability that would arise solely from acting in a situation where personal and fiduciary interests may overlap.

HIPAA Provisions

I intend for my agent to be treated as I would be with respect to my rights regarding the use and disclosure of my individually identifiable health information or other medical records. This release authority applies to any information governed by the Health Insurance Portability and Accountability Act of 1996 (also known as “HIPAA”), 42 USC 1320d and 45 CFR 160-164. I authorize any physician, health-care professional, dentist, health plan, hospital, clinic, laboratory, pharmacy or other covered health-care provider, any insurance company and the Medical Information Bureau Inc. or other health-care clearinghouse that has provided treatment or services to me, or that has paid for or is seeking payment from me for such services, to give, disclose and release to my agent, without restriction, all of my individually identifiable health information and medical records regarding any past, present or future medical or mental health condition, including all information relating to the diagnosis and treatment of HIV/AIDS, sexually transmitted diseases, mental illness, and drug or alcohol abuse.

This provision grants the agent the same rights as the principal when it comes to accessing and receiving the principal’s medical information. It is intended to comply with the federal HIPAA law, which protects the privacy of health records. The principal explicitly authorizes all types of health care providers and related organizations—including doctors, hospitals, insurance companies, labs, and others—to fully disclose and release any and all medical records to the agent, without any restrictions. This includes highly sensitive information, such as records related to mental health, HIV/AIDS, sexually transmitted diseases, and substance abuse. In short, this clause ensures that the agent can freely obtain the principal’s health information when needed.

Exoneration

Except when occasioned by actual fraud, actual malice, willful misconduct, or gross negligence, I expressly (a) exonerate my agent for any injury or loss incurred in carrying out the powers set forth in this Power of Attorney, and (b) direct that my agent shall be reimbursed and made whole and held harmless at my expense, including reasonable accounting and attorneys’ fees, incurred in relation to defending his or her actions in any challenge brought against him or her.

This provision is designed to protect the agent from liability when acting in good faith under the authority of the Power of Attorney. The principal expressly releases the agent from responsibility for any loss or harm that might occur while the agent is carrying out their duties—as long as the agent does not engage in actual fraud, malice, willful misconduct, or gross negligence. Additionally, if the agent is challenged or sued over actions taken in their role, the principal directs that the agent be reimbursed and held harmless, meaning the principal’s estate must cover the agent’s legal fees, accounting costs, or other related expenses in defending themselves. This clause reinforces trust and encourages the agent to act confidently, knowing they are protected unless they engage in serious wrongdoing.

Ratification of Acts

AND I, do hereby ratify and confirm all whatsoever my said agent, and any successors, shall do or cause to be done by virtue of this Power of Attorney. I hereby reserve the right and power to revoke, amend or terminate this Power of Attorney. Anyone dealing with my agent in the belief that this Power of Attorney has not been revoked and who has not received written notice of such revocation, may rely upon this Power of Attorney and be fully protected in doing so, regardless of my whereabouts at the time of any such transaction, whether known or unknown to me, and regardless of the lapse of time since the execution of this Power of Attorney.

This provision confirms that the principal approves and validates all actions taken by the agent (or any successor agent) under the authority of the Power of Attorney. It also makes clear that the principal retains the right to revoke, amend, or terminate the Power of Attorney at any time. However, it protects third parties—such as banks, businesses, or institutions—by stating that they may rely on the Power of Attorney as valid unless they have received written notice that it has been revoked. Even if the principal is unaware of a transaction or is not physically present, and no matter how much time has passed since signing the document, any third party who acts in good faith is fully protected in relying on the agent’s authority. This provision helps ensure smooth transactions and legal certainty for everyone involved.

Signature to Execute Power of Attorney

The Power of Attorney must be properly signed for it to be effective. While state laws may vary on the legal signature requirements, the instrument should be signed, witnessed, and notarized.

Generally, if a POA is validly executed according to the laws of the state where it was signed, it should be recognized in other states under full faith and credit principles—though acceptance by third parties (like banks) can vary.

To include a durable power of attorney in your estate plan, please contact us today.