New Jersey Durable (Financial) Power of Attorney Form

Create a high quality document online now!

Updated October 28, 2022

A New Jersey durable power of attorney is a document used to allow someone else (“agent”) to handle the financial affairs of another person (“principal”). The powers granted will be the same as if the principal was acting themselves with the powers being restricted or unlimited. This designation is common with parents or the elderly in case they can no longer do tasks such as pay bills and handle business decisions on their own. The term “durable” means the form remains legal for use even if the principal should become mentally disabled (e.g. Dementia, Alzheimer’s Disease, etc.).

Table of Contents

Laws

Title 46, Section 2B (Revised Durable Power of Attorney Act)

Definition of “Durable”

A durable power of attorney is a power of attorney which contains the words “this power of attorney shall not be affected by subsequent disability or incapacity of the principal, or lapse of time,” or ” this power of attorney shall become effective upon the disability or incapacity of the principal,” or similar words showing the intent of the principal that the authority conferred shall be exercisable notwithstanding the principal’s subsequent disability or incapacity, and unless it states a time of termination, notwithstanding the lapse of time since the execution of the instrument (§ 46:2B-8.2(b)).

Definition of “Power of Attorney”

A power of attorney is a written instrument by which an individual known as the principal authorizes another individual or individuals or a qualified bank within the meaning of P.L.1948, c.67, s.28 (C.17:9A-28) known as the attorney -in-fact to perform specified acts on behalf of the principal as the principal’s agent (§ 46:2B-8.2(a)).

Signing Requirements

Must be signed by the principal and the agent. The principal is required to sign before a notary public, attorney-at-law, or another individual authorized to take acknowledgments under R.S.46:14-6.1 (§ 46:2B-8.9).

Statutory Form

The New Jersey legislature has not created a sample power of attorney form, but guidance on language that should be included is available at § 46:2B-8.2.

How to Write

Download: Adobe PDF, MS Word, OpenDocument

1 – Find And Download The Form On This Page

The accessible paperwork, on this page, will contain the structure and language required to appoint an Agent with Principal Authority. Simply locate the preview image and select one of the buttons underneath it. Make sure you have a compatible browser or editing program so that you may open and print this document or work on it onscreen.

2 – Report On The Granting Principal And The Agent Assuming Principal Power

The start of this document will require some simple information, though it must be accurate. Find the statement beginning with the word “I” then, fill in the Principal’s Legal Name and Current Address on the blank lines that follow.Now, locate the bracketed label “[Insert The Name And Address Of The Person Appointed]” then, record the Full Legal Name and Legal Address of the Agent (or Attorney-in-Fact) on the blank line preceding it.

3 – The Principal Will Need To Review And Approve The Powers Granted To The Agent

Our next task will require the Principal’s direct participation. A list of Principal Powers that can be delegated to the Attorney-in-Fact through this document has been presented, lettered A through N. The Principal will need to read through this list of Powers thoroughly enough to fully comprehend each type of Principal Power he or she can grant the Agent. If a paragraph statement defines a Principal Power the Principal would like to Authorize granting the Agent, then he or she should initial the blank space associated with that statement. If the Principal would like to simply grant Full Principal Power (according to this list) to the Agent, he or she need only initial the paragraph labeled “N.”

The first two paragraph statements will deal with Principal Property Transactions. By initialing either or both paragraphs, the Principal can grant the Attorney-in-Fact Principal Authority in conducting “(A) Real Property Transactions” and/or “(B) Tangible Personal Transactions” as defined by the statements themselves. The Agent will not be able to perform any actions not approved by Principal Initials.The next subject needing Principal Attention will concern making Principal Decisions and engaging in Principal Actions regarding the Principal’s Business and Finances. The Principal can grant the Agent the Principal Authority to behave in the manner defined in “(C) Stock And Bond Transactions,” “(D) Commodity And Option Transactions,” “(E) Banking And Other Financial Institution Transactions,” and/or “(F) Business Operating Transactions.”

The Principal will also be given the option to grant the Authority-in-Fact the Principal Power to make decisions and take actions on a slightly more personal level. The following area of this Power List enables the Principal to initial and approve the Agent’s use of Principal Power in matters of “(G) Insurance And Annuity Transactions,” “(H) Estate, Trust, And Other Beneficiary Transactions,” and/or “(I) Claims And Litigation.” Each item initialed by the Principal will define a Power the Agent may wield. The Principal may initial one, some, all, or none of these items at his or her discretion.The last few paragraph statements will focus in more personal and confidential areas of the Principal’s life. The Principal can decide to grant any or all the Powers defined here or choose to exclude them altogether. The Principal must initial the statement defining “(J) Personal And Family Maintenance,” “(K) Benefits From Social Security, Medicare, Medicaid, Or Other Governmental Programs, Or Military Service,” “(L) Retirement Plan Transactions,” and/or “(M) Tax Matters” to grant the Agent any or all of these Powers.

If the Principal has decided to grant the Agent his or her Principal Authority to engage in all of the actions defined in this list, then he or she should only initial the blank line preceding “(N) All Of The Powers Listed AboveOne final option the Principal has will be to directly address the Agent assuming Principal Authority and/or other interested entities. The “Special Instructions” section will provide several blank lines so the Principal can include provisions or instructions to be applied to the Agent’s Principal Authority.

4 – The Principal Must Approve Default Powers

This document will also come with some Principal Powers assigned to the Agent by default. The Principal should review these paragraph definitions to the assigned Principal Power and decide if they should be included. If so, nothing needs to be done. If not he or she should strike through each paragraph to be omitted from the Agent’s Principal Power. Subjects discussed will be the Principal “Authority To Delegate” Principal Powers to other entities and the Agent’s “Right To Compensation.” Any Principal Power that has been crossed out before the Principal Signing will not be granted to the Agent.

5 – Successor Agents May Be Appointed Through This Form

The Principal may decide to assign Successor Agents with the ability to assume Principal Powers if or when the Agent named in this document cannot act in this capacity. Any Successor Agent named in this document will need to have his or her Full Legal Name and Address reported on the blank lines in the “Successor Agent” paragraph.

6 – This Paperwork Must Bear The Principal’s Dated Signature

The Principal should read through the “Choice Of Law” statement then Date and Sign his or her Name after the final declaration paragraph statement. Below the Signature line, the Principal will need to record his or her Social Security Number. These items will solidify the Principal’s intent and identity.

There will be an area directly below the Principal’s Signature Area the attending Notary Public can use to notarize this document.

7 – Additional Entities Will Need To Participate In This Signing

The “Acknowledgment Of Agent” paragraph must present the Printed Name of the Agent along with his or her Signature of Acknowledgment.

Finally, the Preparer must Print his or her Name and Sign this paperwork.

 

Related Forms


Advance Directive

Download: Adobe PDF

 

 

 


Last Will and Testament

Download: Adobe PDF