What is a power of attorney?

A power of attorney in Minnesota is a legal document that allows an individual (called the ‘principal’) to appoint another individual (called the ‘agent’ or ‘attorney-in-fact’) to make financial and legal decisions on the principal’s behalf. The appointed agent has the authority to represent the principal’s interests in a variety of matters related to trusts and estates law, which may include signing legal documents, managing a bank account or other assets, filing taxes and collecting debt. The principal must sign the document, and the document must be witnessed and notarized in order for it to be legally binding. Also, in order to ensure that the agent is acting in the best interests of the principal, Minnesota requires that the principal specifically outline what powers the agent has and does not have. This includes both what actions the agent can take and what actions the agent is forbidden to take. It is important to remember that a power of attorney only applies while the principal is still alive; upon the principal’s death, the power of attorney automatically becomes void. If a principal wishes to give an agent the authority to manage their affairs or assets after the principal’s death, they must sign a will or create a trust.

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