Most states will recognize these documents and honor them if they were properly executed in the state in which they were created. This is not always the case. Some will accept them to the point that they comply with that state’s laws. Some state laws are silent on the issue which can cause a legal gray area.
If you have a second home in another state and spend a significant amount of time there, it would be prudent to confirm with an estate planning attorney in that state that your documents created in Maryland will be honored in your second home state. It is not advisable to create two sets of these documents in each state. Signing one could simply revoke the other. It is nearly impossible to create identical documents that would comply with two states’ laws. It is a better practice to create the documents in your primary home state and seek advice from an estate planning attorney in your second home state as to the best way to make the documents comply with that state’s laws.
You may also be able to get appropriate answers from a patient representative in a hospital in the other state. They are often well-versed on how they handle out-of-state power of attorney documents. Make sure when you sign the documents in Maryland that the signature and notary requirements are sufficient in the second state. You can always add more witnesses if needed without negatively impacting Maryland’s requirements. It is better to have too many witness signatures than not enough.
The Uniform Power of Attorney Act is a set of laws governing the creation and scope of power of attorney documents. It was created by the Uniform Law Commission which is a nonprofit organization of attorneys and judges from all fifty states. Twenty-six states have adopted this law including Maryland.
Keep in mind that a power of attorney appoints an agent to act on your behalf. This can be especially difficult if you are hospitalized in another state or you own property in another state and that agent needs to handle a property transaction on your behalf. Often the decision to recognize the agent’s authority under an out-of-state power of attorney depends on the organization or financial institution. It helps when both states have adopted that Uniform Power of Attorney Act.
Some other issues that could cause problems with accepting an agent’s authority to act include:
- The Power of Attorney is dated more than 5 years earlier.
- The Grantor of the Power of Attorney is from a different state than the appointed agent.
- The language in the Power of Attorney is ambiguous as to whether the transaction needed is covered.
If you regularly spend time in another state, point this out to your estate planning attorney when you are executing your power of attorney documents. Planning on the front end can help minimize potential issues later. Contact the experienced estate planning attorneys at Stouffer Legal to learn more. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
