Disclaimer

This article explains general information about North Dakota power of attorney law and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed North Dakota attorney.

Detailed Answer

A financial power of attorney (POA) lets the principal name an agent (also called an attorney-in-fact) to manage financial affairs. Under North Dakota law, a properly executed POA can grant broad authority or narrow, task-specific authority depending on the language used.

Core categories of authority an agent can have

• Banking and cash management: access and manage checking and savings accounts, deposit and withdraw funds, endorse checks, and handle electronic transfers.
• Bill payment and household expenses: pay routine bills, mortgage or rent, utilities, and household expenses.
• Tax matters: prepare, sign, and file tax returns and represent the principal before tax authorities if the POA specifically grants tax authority.
• Benefits and insurance: apply for, receive, and manage Social Security, VA, Medicare/Medicaid benefits and private insurance proceeds when authority is provided.
• Real estate transactions: buy, sell, mortgage, lease, or transfer real property when the POA explicitly grants power over real estate.
• Investment and business decisions: manage investment accounts, buy and sell securities, and operate business interests if those powers are included.
• Recordkeeping and legal dealings: access records, hire professionals (attorneys, accountants), and sign transactional documents within the scope of granted authority.

Durable versus non-durable authority

To remain effective if the principal becomes incapacitated, the POA must include language making it durable (for example, words stating the authority continues despite the principal’s subsequent incapacity). If it lacks durability language, the agent’s authority typically ends if the principal becomes incapacitated.

Springing powers

A POA can be written to “spring” into effect only after a specified event, commonly the principal’s incapacity. If you use a springing POA, specify how incapacity will be determined (for example, by one or more physicians in writing) to avoid disputes or delay.

Limitations and special powers

A POA can limit or expand agent powers. Common limitations include excluding the power to make gifts, to change beneficiary designations, or to create or revoke a trust. Conversely, the document can explicitly allow gifts, amendment of beneficiary designations, or transfer of real estate if the principal wants those actions permitted. Because some actions carry extra risk (gifts, transfers to the agent), states commonly require specific language to authorize them.

Fiduciary duties and accountability

Agents owe fiduciary duties to the principal. They must act in the principal’s best interest, avoid conflicts of interest, keep accurate records, and avoid self-dealing unless the POA clearly permits it. Misuse of authority can lead to civil liability, criminal charges, and removal by a court.

Third-party acceptance

Banks, brokerages, and government agencies sometimes request identification, a certified copy of the POA, or additional forms before they accept an agent’s authority. If a third party refuses a valid POA, the agent may need to seek a court order or use a statutory form accepted by North Dakota institutions.

Revocation and termination

A principal generally can revoke a POA at any time while competent by providing written notice to the agent and relevant third parties. A POA also ends at the principal’s death, at the time stated in the document, or if a court invalidates the POA.

Relevant North Dakota statutory resources

North Dakota codifies power-of-attorney law in the state code and provides forms and guidance through the legislative site. For full text and specific statutory rules, review North Dakota Century Code materials on the North Dakota Legislative Branch website: https://www.legis.nd.gov/cencode. You can search the code for “power of attorney” here: https://www.legis.nd.gov/search?keys=power+of+attorney.

When to give narrow vs. broad authority

Broad authority fits principals who trust their agent to handle all financial matters. Narrow or specific powers work when the principal wants control over particular transactions or fears misuse. If you foresee major transactions (selling property, large gifts), state clearly whether the agent has that power.

What to do if an agent abuses authority

• Immediately revoke the POA in writing, give copies to banks and agencies, and collect evidence of the agent’s actions.
• Contact the financial institutions involved to freeze or monitor accounts.
• Report suspected financial exploitation to local law enforcement and to state adult protective services.
• Consult a North Dakota attorney about civil remedies such as seeking an accounting, filing a lawsuit for breach of fiduciary duty, and asking a court to remove the agent.

Helpful Hints

1. Choose an agent you trust. Consider a spouse, adult child, trusted friend, or a professional fiduciary. Name a successor agent in case the first agent cannot serve.
2. Be specific. State which powers the agent has and which they do not. Use clear, plain language when authorizing risky actions (gifts, transfers, real estate sales).
3. Decide whether the POA should be durable or springing. Include explicit durability wording to cover incapacity without delay.
4. Keep originals and distribute certified copies to banks, brokers, and advisors. Record the POA with the county recorder only if it will be used for real estate transactions.
5. Maintain records. Instruct the agent to keep receipts and account statements. Require periodic accountings if you want added protection.
6. Review and update your POA after major life events (marriage, divorce, large asset changes, death of named agent).
7. Limit gifts and self-dealing unless you expressly want your agent to have those powers and you use clear statutory language where required.
8. Tell family members and institutions who the agent will be. Early notice reduces surprises when the agent acts.
9. Consider pairing the POA with a health care directive so decision-making roles are clear between financial and medical decision-makers.
10. If a financial institution refuses to accept your POA, ask what it needs to accept the document and consult an attorney if it refuses a valid, properly executed POA.