Detailed answer — What powers a financial power of attorney can give your agent under Arkansas law

This answer explains in plain language what a durable financial power of attorney (POA) can let an appointed agent do if you can no longer manage your finances. It covers common powers, limits, formal requirements, and how Arkansas law treats the agent’s duties. This is educational information, not legal advice.

What a financial power of attorney is

A financial power of attorney is a legal document in which you (the principal) name another person (the agent or attorney‑in‑fact) to act for you in financial matters. You can give the agent broad authority to act almost as you would, or you can limit authority to specific acts. If you want the agent’s authority to continue after you become incapacitated, the document must include durable language (for example, words saying the authority continues if you become incapacitated).

Common powers typically granted

When you grant general financial authority, the agent can usually do all of the following on your behalf unless you limit the document:

• Manage bank accounts: deposit, withdraw, transfer funds, and close accounts.
• Pay bills and manage ongoing household expenses.
• Buy, sell, lease, mortgage, or manage real estate you own.
• Buy, sell, and manage investments: stocks, bonds, mutual funds, and retirement accounts (subject to plan rules).
• Operate any business you own or control, sign contracts, and hire professionals.
• Collect benefits and entitlements and apply for government benefits on your behalf (e.g., Social Security, Veterans benefits) where permitted.
• File and sign tax returns, pay taxes, and interact with tax authorities.
• Access safe‑deposit boxes and obtain records (bank, brokerage, and financial).
• Settle claims and handle litigation relevant to your finances.
• Hire lawyers, accountants, real estate agents, and other professionals and pay them from your funds.
• Create, modify, or revoke certain trusts or transfer assets to trusts if the POA specifically authorizes those acts.
• Make gifts or transfers to others, if the power to make gifts is explicitly given in the document (many states require express language for gifting authority).

Actions that typically require express language or are restricted

Some powerful acts usually need specific, clear wording in the POA. If not expressly granted, the agent may not have authority to:

• Make large gifts or change beneficiaries on life insurance or retirement plans.
• Create, amend, or revoke a testamentary trust or Last Will and Testament.
• Renounce or disclaim an inheritance on your behalf unless the POA specifically allows it.
• Execute certain transactions involving your marital rights or elective share without express instruction.
• Take actions prohibited by the document or by later court order.

Durability and when the agent’s authority starts

Arkansas recognizes durable powers of attorney. To make the POA durable — that is, to let it continue if you become incapacitated — include clear “durable” language in the document. You can also make the POA springing (effective only upon a future event, such as a doctor’s written determination of incapacity), but springing POAs can cause delays because institutions may require proof of the triggering event.

Agent duties and limits under Arkansas law

When an agent acts for you, Arkansas law requires the agent to act loyally and in your best interest. That means:

• The agent must avoid conflicts of interest and self‑dealing unless the POA authorizes such acts and the agent follows the law.
• The agent must keep clear records and provide accountings when required.
• The agent must follow any instructions in the POA and act within the scope of authority granted.

If an agent abuses their power, Arkansas law provides remedies, and a court can remove an agent and appoint a conservator or take other corrective steps.

Form, witnessing, and notarization

To be effective and to reduce disputes, a POA should be signed, witnessed, and notarized according to Arkansas requirements. Financial institutions often insist on an original signed and notarized document before allowing the agent to transact business. Keep the original in a safe place and give copies to institutions and your agent.

Why some banks and companies ask for their own forms

Even with a properly executed POA, banks and other institutions may ask the agent to complete the institution’s POA acceptance form. That practice is common. If an institution refuses a valid POA, an attorney can help persuade the institution or seek a court order.

Revocation and replacement

You can revoke or replace a financial POA any time while you have capacity by executing a signed revocation and providing notice to institutions and the agent. When you die, the POA ends; the executor or personal representative then handles your estate.

Where Arkansas law is written

Arkansas’s rules for powers of attorney (including standards for durable powers, agent duties, and form requirements) appear in the Arkansas statutes implementing the Uniform Power of Attorney Act. You can review the Arkansas Code and search for “power of attorney” at the Arkansas Legislature’s official site: https://www.arkleg.state.ar.us/. For practical forms and guidance, the Arkansas Secretary of State and courts provide resources and forms on state websites.

Bottom line

A properly drafted and executed durable financial power of attorney can give your agent broad authority to manage your money, property, taxes, benefits, and business affairs if you become unable to act. To avoid surprises, draft clear language about any sensitive powers you want to allow or forbid (like gifting or changing beneficiaries), have the document notarized, and give copies to your agent and relevant institutions. If you anticipate complex transactions or large assets, consult an attorney to draft tailored authority.

Disclaimer: This article provides general information only and is not legal advice. For advice about your specific situation, consult a licensed Arkansas attorney.

Helpful Hints — Practical steps to make your financial POA work when it matters

• Use durable language if you want the agent’s power to survive incapacity.
• List specific powers you want the agent to have (real estate, gifts, trusts, taxes) and any powers you do not want to grant.
• Have the document signed in front of required witnesses and notarized to avoid institution refusals.
• Give original or certified copy to your bank, broker, and other institutions and keep a record of where originals are stored.
• Choose an agent you trust; an agent has fiduciary duties and broad access to your assets.
• Consider successor agents in case your first choice is unable or unwilling to serve.
• Keep a list of accounts and contact information to make handling affairs smoother for your agent.
• Review the POA every few years or after major life changes (marriage, divorce, large asset changes).
• If you want gifting or beneficiary changes allowed, include specific, clear language authorizing those acts.
• If a bank or company refuses your agent’s authority, ask for a written reason; if necessary, consult an Arkansas attorney or pursue court intervention.

For further reading and to view Arkansas statutes and resources, visit the Arkansas Legislature’s site: https://www.arkleg.state.ar.us/.