New Mexico Power of Attorney Form Template – Forbes Advisor

A power of attorney is a legal document where one person, referred to as the principal, gives another person, known as the “attorney-in-fact,” authority to make decisions for them. The attorney-in-fact doesn’t need to be an actual attorney, but it should be someone the principal trusts to make sound choices on their behalf.

Powers of attorney can be “durable,” which means they are still in effect if the principal becomes incapacitated or unable to make decisions. Durable powers of attorney typically end with the principal’s death. A general power of attorney that is not durable is no longer effective if the principal becomes incapacitated.

In most states, a power of attorney must be notarized to be effective.

Anyone who wishes to allow another person to make certain financial, healthcare or other decisions on their behalf should strongly consider a power of attorney. They can be an especially useful estate planning tool to protect your wealth if you can no longer manage your finances.

In order for a power of attorney to be valid in New Mexico, it must be in writing and contain all of the following:

• The name of the agent or attorney-in-fact
• The scope of the POA, meaning the rights and responsibilities the principal is assigning to the agent or attorney-in-fact
• The principal’s signature which must be notarized
• The date of execution

In addition, the principal must be competent to grant the power of attorney. Being competent—sometimes called being “of sound mind”—means having sufficient mental capacity to understand what they’re doing and being able to make their own decisions.

Principals can choose from several types of powers of attorney. But, generally speaking, there are two different categories of powers of attorney:

• those based on mental soundness and
• those based on what they do and don’t cover.

Capacity-Based Powers of Attorney

Protecting assets if someone becomes incapacitated is one of the main reasons for creating powers of attorney. That’s why many POAs are designed based on the capacity of the principal.

• Durable Power of Attorney. Here, the principal intends for the authority granted to the agent to continue even after they become incapacitated. Durability is presumed in New Mexico, which means a POA will automatically remain effective if the principal becomes incapacitated or disabled.
• General Power of Attorney. A general (or “non-durable”) power of attorney can only be created when the principal is competent. If the principal becomes incapacitated, the POA is no longer effective.
• Springing Power of Attorney. Here, the POA only becomes effective if the principal becomes disabled or incapacitated. It’s also sometimes called a “standby” power of attorney.

Scope-Based Powers of Attorney

These powers of attorney are confined to a specific task or situation. They can be as narrow as a POA to sell a specific piece of property or asset. Or, they can be as broad as granting the agent the power to act in all financial matters for the principal.

The medical power of attorney (which is part of the state health-care directive form) is perhaps the best-known scope-based power of attorney. This document grants the agent the power to make medical decisions on behalf of the principal. Typically, this is when principals cannot make those decisions themselves.

Short answer: Anyone can serve as an attorney-in-fact. Also called an agent, this person should be someone you trust to make critical decisions, such as an adult child, close friend or family member. If the principal has the capacity, they choose their own agent. If they are incapacitated, the court may appoint one on their behalf.

Principals may also select alternate attorneys-in-fact in the event the primary is unavailable. However, they should not choose co-agents, which can lead to disagreements that cause delays in decision-making.

Who must sign a power of attorney and other requirements vary by state. In New Mexico, a power of attorney form must be notarized. If the document is notarized, it is presumed to be genuine.

You can use a template like the one provided above to create a perfectly legal power of attorney in New Mexico. You could even write one without a template, as long as it meets all the legal requirements.

Just because you don’t have to have a lawyer draw up your POA, though, doesn’t mean you shouldn’t. A power of attorney can give sweeping powers to the attorney-in-fact, so it’s a good idea to have a qualified lawyer review the document before signing.