Creating a power of attorney is not a permanent, irreversible decision. As long as you are mentally competent, you have the right to revoke your power of attorney at any time, for any reason. Perhaps your relationship with your agent has changed, you want to name a different agent, or you simply no longer need the document. Whatever the reason, knowing how to properly revoke a POA is just as important as knowing how to create one.
Can You Revoke a Power of Attorney?
Yes. A principal can revoke a power of attorney at any time, as long as they have the mental capacity to do so. Mental capacity means you understand what a power of attorney is, you understand that you are revoking it, and you can communicate that decision.
No court approval is needed. You do not need your agent's permission. You do not even need a specific reason. The right to revoke is fundamental to the concept of a power of attorney, since it is rooted in the principal's voluntary delegation of authority.
However, simply deciding to revoke is not enough. You must follow the proper steps to ensure the revocation is legally effective and practically enforceable.
Step-by-Step Revocation Process
Step 1: Create a Written Revocation
While some states allow oral revocations, a written revocation is always the safest and most defensible approach. Your revocation document should clearly identify you as the principal, reference the original POA being revoked (including the date it was signed), state that you are revoking the POA and all authority previously granted, and include your signature and the date.
Some states have specific statutory forms for revocations, while others allow you to draft your own. Regardless, the language should be clear and unambiguous. Avoid vague statements like "I no longer want this" in favor of explicit language like "I hereby revoke the power of attorney dated [date] naming [agent name] as my agent."
Step 2: Notify Your Agent
Your agent must be informed of the revocation. Without actual notice, your agent may continue to act in good faith under the original POA, and third parties who rely on those actions may be legally protected.
Provide your agent with a copy of the written revocation. Do this in a way that creates a record, such as certified mail with return receipt, personal delivery with a signed acknowledgment, or email with a read receipt followed by a hard copy.
Once notified, your agent is legally obligated to stop acting on your behalf and return any original documents, cards, or access credentials they received in connection with the POA.
Step 3: Notify Third Parties
This is one of the most critical steps, and the one most often overlooked. Anyone who has a copy of the original POA or has been dealing with your agent under the POA must be notified of the revocation. This includes banks and financial institutions, investment brokers, insurance companies, healthcare providers, government agencies, title companies, business partners, and any other person or entity that has been relying on the POA.
Until a third party receives actual notice of the revocation, they may continue to honor the agent's authority in good faith. If they do, you may be bound by the transactions your former agent conducts. Sending written notification to all relevant parties protects you from this scenario.
Step 4: Retrieve Original Documents
If your agent has the original POA document or certified copies, request their return. Having the original destroyed or marked as revoked prevents it from being presented to unsuspecting third parties.
If your agent refuses to return documents, your written notification to third parties becomes even more important. You can also seek legal assistance if necessary.
Step 5: Record the Revocation (If Applicable)
If your original POA was recorded with a county recorder's office (which is common for POAs involving real estate), you should also record the revocation with the same office. This puts the public on notice that the original POA is no longer valid.
Step 6: Create a New POA (If Desired)
If you are revoking your current POA because you want to name a different agent or change the terms, you should create a new POA at the same time. The new document should state that all prior powers of attorney are revoked, reinforcing your revocation.
When Revocation Happens Automatically
In some situations, a power of attorney is revoked automatically by operation of law, without the principal needing to take any action.
Death of the principal. A POA terminates automatically when the principal dies. The agent's authority ceases immediately, and the executor or personal representative of the estate takes over.
Incapacity of the principal (non-durable POA only). If the POA is non-durable, it is automatically revoked when the principal becomes mentally incapacitated.
Divorce. In many states, if the agent is the principal's spouse and the couple divorces, the POA is automatically revoked. However, this is not universal, so check your state's law.
Agent's inability to serve. If the agent dies, becomes incapacitated, or resigns, the POA may terminate unless a successor agent is named.
Expiration. If the POA includes a specific expiration date or is limited to a particular transaction, it terminates when the date passes or the transaction is completed.
Common Mistakes in POA Revocation
Several common errors can undermine the effectiveness of a revocation.
Failing to notify third parties. This is the most common and most consequential mistake. If banks and other institutions do not know the POA has been revoked, they may continue to honor the former agent's authority.
Relying on verbal revocation. While some states recognize oral revocations, proving that a verbal revocation occurred can be extremely difficult. Always put your revocation in writing.
Not retrieving original documents. If your former agent retains copies of the POA, they could potentially present them to third parties who are unaware of the revocation.
Not recording the revocation. If the original POA was recorded, failing to record the revocation leaves a public record showing the agent still has authority.
Assuming a new POA automatically revokes the old one. While creating a new POA typically revokes conflicting earlier ones, this is not always clear-cut. Explicitly revoking the old POA removes any ambiguity.
What If the Principal Lacks Capacity?
If the principal has lost mental capacity, they cannot revoke their own POA. In this situation, the options are more limited. A court can revoke the POA if there is evidence of agent misconduct or abuse. A guardian or conservator appointed by the court can revoke the POA. Some states allow certain family members to petition the court to revoke the POA under specific circumstances.
If you suspect that an agent is abusing their authority under a POA, contacting adult protective services and filing a complaint with the appropriate authorities is strongly recommended.
Protect Yourself Through Proper Revocation
Revoking a power of attorney is your right, and doing it properly ensures a clean break from the previous arrangement. Take the time to follow each step, particularly notification of third parties, to protect yourself from unintended consequences.
mypoa.ai can help you create a new power of attorney if you are revoking an old one and naming a new agent. Be sure to follow the notification and revocation steps outlined above carefully, and keep written records of every notification you send to third parties.