Most of my clients incorporate at least one Power of Attorney in their estate plan. Given the versatile and practical nature of a Power of Attorney, you will likely execute one yourself or find yourself named as the Agent in one at some point in your life. While a Power of Attorney is a commonly used and recognized legal document, it is also one of the most frequently misunderstood estate planning tools. With that in mind, allow me to help you understand your Maryland Power of Attorney.
What Is a Power of Attorney?
A power of attorney, or POA, is a legal document that allows the creator (referred to as the “Principal”) to grant another person (the “Agent”) the legal authority to act on his/her behalf. The type and extent of the legal authority granted to an Agent depends on the type of POA executed. Maryland recognizes several types of Powers of Attorney, including:
- General Power of Attorney: This grants the Agent broad authority to act on behalf of the Principal with few restrictions. An Agent with general POA can do things such as enter into contracts in your name, conduct financial transactions on your behalf, and sell assets owned by you. Be sure you understand the authority you are granting someone before executing a general POA. If you are an Agent under a general POA, be sure that you understand the limitations Maryland law places on a general POA to avoid unintentionally exceeding your authority.
- Limited (or Special) Power of Attorney: A limited POA “limits” the Agent’s authority to specific tasks or time frame. For example, the Principal might grant the Agent the authority to negotiate the sale of a vehicle while the Principal is out of town or parents often execute a limited POA to give a caregiver legal authority to act in an emergency while the parents are away.
- Durable Power of Attorney: A traditional POA automatically terminates upon the death or incapacity of the Principal. The “incapacity” limitation of a traditional POA gave rise to the durable POA. Making a Power of Attorney durable means that the authority granted to the Agent survives the incapacity of the Principal. Maryland law presumes that a POA is durable unless the document specifically states that it is not intended to survive the incapacity of the Principal.
- Springing Power of Attorney: A “springing” power of attorney gives the Agent the power to act for the principal only after a certain event occurs, such as when the principal becomes incapacitated.
- Medical Power of Attorney: Referred to by various names, such as a Healthcare Power of Attorney, Health Care Proxy, and Healthcare Surrogate, this type of POA allows the Agent to make medical decisions on behalf of the Principal if the Principal cannot make or communicate those decisions for themself.
What Is Required to Create a Power of Attorney in Maryland?
To execute a Power of Attorney in Maryland, certain requirements must be met, including:
- The Power of Attorney must be in writing.
- The Principal must sign the document, or if the Principal is unable to sign, another individual can sign on the Principal’s behalf in the presence of the Principal.
- The document be notarized and witnessed by two individuals. The witnesses must be present when the Principal signs the document. The notary may also serve as one of the witnesses.
- The Principal must be legally competent.
Can a Third Party Require a Different Form or Refuse to Honor an Agent’s Authority?
Maryland law is very clear regarding the duty to honor an Agent’s authority under a POA. A person or entity may not require an additional or different form of Power of Attorney for any authority granted in a statutory form POA. A third-party can also face civil liability, including fines and penalties and Attorneys’ Fees, for refusing to honor an Agent’s authority.
Understanding an Agent’s Duty under a Maryland Power of Attorney
An Agent has a fiduciary duty when acting under the authority granted in a Power of Attorney. Maryland law spells out the duties and responsibilities of an Agent, including (but not limited to) the duty to:
- Act in accordance with the principal’s reasonable expectations to the extent actually known by the agent and, otherwise, act in the principal’s best interest.
- Act with care, competence, and diligence for the best interest of the principal.
- Act only within the scope of authority granted in the Power of Attorney.
Are There Limits to an Agent’s Authority under a Maryland Power of Attorney?
Even if an Agent has been granted general Power of Attorney in Maryland, there are limits to the Agent’s authority. For example, an Agent cannot make medical decisions for the Principal unless the Principal executed a specialized medical POA. An Agent is also prohibited from self-dealing and from making gifts unless the Principal included language in the POA specifically authorizing such authority. Before exercising your authority as an Agent, consult with an experienced estate planning attorney to ensure that you understand your duties and responsibilities as well as your limitations.
Do You Need Help with a Maryland Power of Attorney?
For more information, please contact our estate planning office in Owings Mills, Maryland by calling 410-654-3850 to schedule an appointment.
- What You Need to Know about the Medicaid Estate Recovery Program in Maryland - July 7, 2026
- How Divorce Affects Your Estate Plan in Maryland - January 9, 2026
- Should the Details of My Maryland Estate Plan Remain Private? - January 8, 2026
