# Creating a Power of Attorney

> Methods of Creating a Power of Attorney

Source: https://wiki.powersofattorney.com/creation/create · Updated 14 February 2024

### Creating A *Power of Attorney*

**Page overview**

- **This page examines the creation of a *Power of Attorney*.**

Video: https://www.youtube.com/watch?v=BN7M-xwrwuA

**Page index**

- [“Creating” a *Power of Attorney* might refer to merely **printing or** actually **signing** a *Power of Attorney*](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings)
- [**Anyone with capacity** is at liberty to **create & use** a *Power of Attorney*](https://wiki.powersofattorney.com/creation/create#anyone-with-capacity-is-at-liberty-to-create-use-a-power-of-attorney)
- [Once created, a *Power of Attorney* **may be held** and released **for use** only **in certain circumstances**](https://wiki.powersofattorney.com/creation/create#a-power-of-attorney-may-be-subject-to-escrow-arrangements)
- [A *Power of Attorney* **may be subject to other arrangements** such as being operational only when certain conditions are satisfied](https://wiki.powersofattorney.com/creation/create#using-a-power-of-attorney-may-be-subject-to-other-arrangements)
- [*Powers of Attorney* may be **created in writing** or orally](https://wiki.powersofattorney.com/creation/create#there-are-various-methods-to-create-a-power-of-attorney)
- [A *Power of Attorney* for a **commercial entity** is subject to **special considerations**](https://wiki.powersofattorney.com/creation/create#creation-of-a-power-of-attorney-by-a-commercial-entity-involves-special-considerations)
- [**In Florida special considerations** tend to limit the designs of *Powers of Attorney* a person might use](https://wiki.powersofattorney.com/creation/create#there-are-special-considerations-in-florida)

## Terms Like “Create” Or “Make” A *Power Of Attorney* Have Various Meanings

Expressions like “[create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney*” or “[make](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney*" may have different meanings, depending upon their context.

The expression may refer to bringing into existence a *Power of Attorney* that:-

|  |  |
| --- | --- |
| ..has **not been signed by the** [**principal**](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney), perhaps to be subject of further deliberation, advice or discarded | **is not yet signed** |
| ..has been [**properly executed**](https://wiki.powersofattorney.com/terms#meaning-of-properly-executed) **by the** [**principal**](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) and in respect of which **no** [**agent**](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) **has** [**accepted appointment**](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states), albeit they may [accept appointment](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) in the future. | **is signed by the principal** |
| ..has been [**properly executed**](https://wiki.powersofattorney.com/terms#meaning-of-properly-executed) **by the** [**principal**](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) and in respect of which **an** [**agent**](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) **has** [**accepted appointment**](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) to act as an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) under the *Power of Attorney* | **is signed by the principal & agent** |

## Anyone With Capacity Is At Liberty To Create & Use A *Power Of Attorney*

### Requisite Capacity

To [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney*, the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) must understand their own affairs and the effect of their actions in [creating](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney*.[^1]

For example, in **California**:-

- the expression "*capacity to contract*" is seen in [§4120](https://codes.findlaw.com/ca/probate-code/prob-sect-4120.html) and [§4155](https://codes.findlaw.com/ca/probate-code/prob-sect-4155.html):

  - [§4120](https://codes.findlaw.com/ca/probate-code/prob-sect-4120.html) provides: "*a natural person having the **capacity to contract** may execute a Power of Attorney*"
  - [§4155](https://codes.findlaw.com/ca/probate-code/prob-sect-4155.html) provides: "*the authority of an agent under a nondurable Power of Attorney is terminated by the **incapacity of the principal to contract***":

- [§811](https://codes.findlaw.com/ca/probate-code/prob-sect-811.html) discusses the notion of "*capacity to contract*" at length

### No Need To Demonstrate A Need To Use A *Power of Attorney*

It is not a condition of using a *Power of Attorney* that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) is unable to be physically present.

A *Power of Attorney* may be used simply because it is convenient, in circumstances where the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) would merely prefer someone else perform a [task](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) on their behalf, despite the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) being otherwise able to perform the [task](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) themselves, if they chose to do so.

That is not to say that *Powers of Attorney* are not sometimes designed to work such that an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may only perform certain [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) if the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) lacks [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) or the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) is not in a particular location or similar, however these *Powers of Attorney* are merely possible designs.

What an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is authorized to do and when is always simply a matter for the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney).

### Minors, Bankrupts, Prisoners, Military Personnel etc.

Subject to some state-based exceptions, a minor who has otherwise come of age for legal purposes by virtue of marriage or otherwise may [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney*, as might a prisoner.

A bankrupt may be able to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney*, albeit perhaps only for certain purposes.

A military person can [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a [military](https://wiki.powersofattorney.com/typescommonlyusedpersons#military-powers-of-attorney) *Power of Attorney* that is fully compliant with all state-based requirements, including any [mandatory requirements](https://wiki.powersofattorney.com/creation/requirements#mandatory-requirements-1), without being in writing if necessary, by virtue of [special legislation](https://wiki.powersofattorney.com/typescommonlyusedpersons#military-powers-of-attorney).

[Creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of a *Power of Attorney* by a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) (*i.e. a business trading as a company or partnership, a trust or an association etc.*) is addressed under the heading [Creation Of A *Power of Attorney* By A Commercial Entity Involves Special Considerations](https://wiki.powersofattorney.com/creation/create#creation-of-a-power-of-attorney-by-a-commercial-entity-involves-special-considerations).

## A *Power of Attorney* May Be Subject To Escrow Arrangements

A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) may [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) and sign a *Power of Attorney* that is intended to be used immediately.

Alternatively, a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) may prefer to:-

- [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings), sign and place a *Power of Attorney* in safe custody, to be presented to an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who may [accept appointment](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) upon being presented with the *Power of Attorney*
- [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings), sign and have an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) [accept appointment](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) under the *Power of Attorney* and then place it in safe custody, only for use in certain circumstances

The potential placement of *Powers of Attorney* in safe custody for use in the future is an interesting feature of *Powers of Attorney*.

[Lapse of time](https://wiki.powersofattorney.com/agentappt#delay-ie-lapse-of-time-is-no-obstacle-to-acceptance) provisions in each of the [Six (6) Greater States](https://wiki.powersofattorney.com/introduction#ca-tx-ny-fl-il-and-pa) affirm that delay between a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) signing and an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) signing a *Power of Attorney* does not affect its operation, other than **Texas** in respect of a [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney*.[^2]

A [prudent principal](https://wiki.powersofattorney.com/principal#being-a-prudent-principal-is-encouraged) who does not want a [properly executed](https://wiki.powersofattorney.com/terms#meaning-of-properly-executed) *Power of Attorney* to remain on foot would ensure that it contains clear terms dealing with [termination](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end), absent which an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may potentially rely upon a *Power of Attorney*.

## Using A *Power of Attorney* May Be Subject To Other Arrangements

[Directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney) and [limitations](https://wiki.powersofattorney.com/limitwhatis#a-limitation-regulates-the-core-terms-of-a-power-of-attorney) included in a *Power of Attorney* may deal with its use.

For example, a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) might specify that a *Power of Attorney*:-

- not be used unless an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) has [accepted appointment](https://wiki.powersofattorney.com/agentappt#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) before a certain date
- [terminate](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end) in certain circumstances
- only be used if a [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party) has approved the use of the *Power of Attorney*
- only be used if [notice](https://wiki.powersofattorney.com/insightrisks#using-notification-regimes-may-reduce-risks) has been given of intention to use the *Power of Attorney*

## There Are Various Methods To Create A *Power Of Attorney*

*Powers of Attorney* are most commonly [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) in writing as a ‘stand-alone’ document.

It is possible to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney* by other means, such as:-

- [orally](https://wiki.powersofattorney.com/typescommonlyusedpersons#oral-powers-of-attorney) (i.e. by exchanging suitable words)
- via written communications (i.e. correspondence evidencing the [creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of a *Power of Attorney*)
- within a [legal instrument](https://wiki.powersofattorney.com/terms#meaning-of-legal-instrument) that has a wider purpose (for example, a loan contract, see [contractual](https://wiki.powersofattorney.com/typescommonlyusedpersons#contractual-powers-of-attorney) *Powers of Attorney*)

## Rights, Entitlements, Obligations, Implications & Consequences

[Creating](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney* triggers rights, entitlements and obligations arising on the part of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney), [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) and [third parties](https://wiki.powersofattorney.com/terms#meaning-of-third-party).

The rights, entitlements and obligations arising on the part of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney), [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) and [third parties](https://wiki.powersofattorney.com/terms#meaning-of-third-party) remain subject to the terms of the *Power of Attorney* read in conjunction with relevant laws.

For example:

**An Agent**

- An [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may rely on the *Power of Attorney* as evidence of authority to perform the [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) identified in the *Power of Attorney*, as and when prescribed in the *Power of Attorney*.
- An [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is authorized to [legally bind](https://wiki.powersofattorney.com/terms#meaning-of-legally-bind) the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) in dealings entered into by the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) on behalf of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) with a [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party).
- An [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) becomes [duty bound](https://wiki.powersofattorney.com/agentoblig#an-agent-owes-various-duties-to-the-principal) to act in the best interests of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) at all times.
- An [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is prevented from benefiting themselves at the expense of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney), unless expressly authorized to receive the benefit.
- An [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may acquire additional liabilities where they perform the delegated [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) improperly, fail to keep [accounts](https://wiki.powersofattorney.com/agentoblig#case-study-duty-to-keep-accounts), fail to avoid conflicts of interest etc.[^3]

**A Principal**

- A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) may become liable to [compensate the agent and reimburse expenses](https://wiki.powersofattorney.com/agententitle#an-agent-may-be-entitled-to-remuneration-or-expenses).
- A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) may become liable to indemnify an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) in respect of any liability on the part of the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to a [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party), where the actions of the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) performing their role result in a [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party) suffering loss.
- A [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) may become liable to indemnify an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) in respect of any loss or damage suffered by the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) in the course of performing as an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal).

**A Third Party**

- A [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party) may or may not be exposed to a potential order to pay an [agent's](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) legal costs, if the [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party) refuses to do business with an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) without [reasonable grounds to refuse](https://wiki.powersofattorney.com/thirdparty/interests#the-statutory-grounds-to-refuse-to-deal-with-agents-are-similar-in-the-six-6-greater-states).
- A [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party) may require that certain [certificates](https://wiki.powersofattorney.com/recordkeeping#any-list-of-relevant-records-is-substantial) or [affidavits](https://wiki.powersofattorney.com/recordkeeping#any-list-of-relevant-records-is-substantial) be provided by an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) confirming matters pertinent to the [validity](https://wiki.powersofattorney.com/thirdparty/interests#a-third-party-enforcement-regime-operates-in-five-of-the-six-6-greater-states) of the *Power of Attorney*.
- A [third party](https://wiki.powersofattorney.com/terms#meaning-of-third-party) may typically assume that a *Power of Attorney* is reliable, if certain requirements are met.

## **Creation Of A** ***Power of Attorney*** **By A Commercial Entity Involves Special Considerations**

A [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) (*i.e. a business trading as a company or partnership, a trust or an association etc.*) must ensure that [creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of a *Power of Attorney* is consistent with any relevant [constituting documents](https://wiki.powersofattorney.com/terms#meaning-of-constituting-documents).

The [creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of a *Power of Attorney* by a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) should be the subject of a resolution of the members as a record of the [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) having resolved to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) the *Power of Attorney*, without which the validity of the *Power of Attorney* may be disputed.

For example, if an [LLP](https://wiki.powersofattorney.com/terms#meaning-of-llp) wanted to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney*, it would be important to:-

- review the partnership deed governing the partnership and ensure that it authorizes and does not impose any relevant limitation upon the entitlement of the partnership to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) the *Power of Attorney*
- ensure that a suitable resolution is passed by the partners, resolving to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) the *Power of Attorney*
- preferrably attach a copy of the proposed *Power of Attorney* to the resolution, to minimize any risk of debate as tpoo whether the precise terms of the *Power of Attorney* fall within the terms of the resolution

Similarly, if an [LLC](https://wiki.powersofattorney.com/terms#meaning-of-llc), trust, association, corporation or other [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) wanted to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney,* the starting point would usually be to review the [constituting document](https://wiki.powersofattorney.com/terms#meaning-of-constituting-documents) (*i.e. articles of incorporation*) governing the [LLC](https://wiki.powersofattorney.com/terms#meaning-of-llc) to ensure that the [LLC](https://wiki.powersofattorney.com/terms#meaning-of-llc) or other kind of [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) is authorized to [create](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) *Powers of Attorney* and assuming that is the case, then attach the relevant *Power of Attorney* to a suitably worded resolution of directors, partners or other relevant officeholders.

In circumstances where the [constituting document](https://wiki.powersofattorney.com/terms#meaning-of-constituting-documents) of a [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity) does not expressly authorize the [creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of *Powers of Attorney,* the [constituting documents](https://wiki.powersofattorney.com/terms#meaning-of-constituting-documents) should be amended before it is [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings), to expressly authorize the [creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of *Powers of Attorney* by the [commercial entity](https://wiki.powersofattorney.com/terms#meaning-of-commercial-entity).

## There Are Special Considerations In Florida

In **Florida**, there is a prohibition upon the [creation](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) of:-

- a *Power of Attorney* for a [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^4] that is to "become effective" at a future point in time (see [§709.2108(3)](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2108.html))
- a [general](https://wiki.powersofattorney.com/typescommonlyusedpersons#general-powers-of-attorney) *Power of Attorney* for a [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^3] (see [§2201](https://codes.findlaw.com/fl/title-xl-real-and-personal-property/fl-st-sect-709-2201.html))

In **Florida**, the impact of the words “*become effective*” needs to be considered when [creating](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a *Power of Attorney* for a [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person)[^5].

It seems reasonable to equate the words “*become effective*” to "*becoming [binding](https://wiki.powersofattorney.com/terms#meaning-of-legally-bind) upon the [principal](https://wiki.powersofattorney..com/en/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney)*."[^6]

[^1]: [Click here](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) for more information about [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs).
[^2]: In a [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney* under the laws of Texas, it may be prudent for example, to include a suitable [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney) affirming that any delay between signing of the [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Power of Attorney* by the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) and any [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) will not effect its operation, because [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) does not govern [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney) *Powers of Attorney* in Texas.
[^3]: Ibid.
[^4]: Being a *Power of Attorney* for a [person](https://wiki.powersofattorney.com/terms#meaning-of-natural-person) that is not excluded from the ambit of the [legislation](https://wiki.powersofattorney.com/legislation#the-legislation-governs-powers-of-attorney-for-persons) - [click here]
[^5]: Ibid.
[^6]: [Click here](https://wiki.powersofattorney.com/typescommonlyusedpersons#springing-powers-of-attorney) to read more.
