A general power of attorney provides an authorized agent with broad powers to act in the place of the principal (the person granting power of attorney). New Mexico statutory law describes a wide range of areas where the agent can act with the same authority as the principal if the principal neglects to limit their powers.
As principal, you also have the right to exclude certain powers listed in the general power of attorney statutes for New Mexico. Working with an experienced New Mexico lawyer can help you uncover what exact capabilities your agent needs — and how to protect yourself by limiting the ones they don’t need.
New Mexico Financial & Family Law is available to assist you, your family, and your business in matters of serious legal importance. Reach out to our New Mexico attorneys to learn more about the best way to structure your power of attorney arrangements to maximize your advantages while minimizing risks.
Call 505-503-1637 or contact us online to schedule a confidential, no-obligation case review and discuss your options for granting general power of attorney in New Mexico.
General power of attorney is a broader form of financial power of attorney. In many states, including New Mexico, the powers given to the agent are based on language from the Uniform Power of Attorney Act.
Anyone who consents to the powers granted through a general power of attorney will give their agent wide-ranging permission to act in their place in most aspects of finance, law, and business. The statutes provide broad power to the agent so they can navigate common situations — without needing clarification from the principal or the execution of another document expanding their powers.
Giving someone a general power of attorney makes the most sense for individuals who have lost medical capacity or who have difficulty keeping up with their legal and financial obligations on a daily basis. That latter description may apply to individuals who have a lot of different dealings going on at once. It can also refer to those who have medical conditions that prevent them from readily going to places where they are physically needed to sign something or otherwise handle important matters.
Individuals who travel a lot — especially internationally — can also benefit from having an agent located at home who can handle nearly all of their business.
Depending on your own circumstances, New Mexico Financial & Family Law may recommend limiting your general power of attorney to a specific date range, or we may suggest getting more specific about the powers afforded to your agent. There are many ways to “wind back” the authority your agent has. You can place limits on the situations where their powers are active or limit the types of activities they are permitted to conduct on your behalf.
Talking to an experienced lawyer in New Mexico is the best way to prevent major problems from occurring as a result of granting general power of attorney.
Your lawyer will listen carefully to your goals and the types of tasks you worry about being able to handle yourself. They will also learn as much as they can about the details of your typical schedule — as well as any special circumstances that may have prompted you to consider giving someone general power of attorney.
Once you have covered your situation and goals at length, your lawyer can provide tailored recommendations for creating the perfect general power of attorney authorization. This due diligence goes a long way towards preventing undesirable situations or legal complications.
To give someone general power of attorney, you have to complete a special document.
The general power of attorney document should:
Once you complete the document, you need to date and sign it.
You should strongly consider signing the document in the presence of a notary public, who can then sign the document themselves and apply their seal. Having your general power of attorney notarized is not required by New Mexico law, but it does mean that your signature “is presumed to be genuine” (NM Stat § 45-5B-105).
A general power of attorney activates immediately once the document is signed by the principal — unless they specify another date or condition for the power to activate.
For example, you could state that your general power of attorney comes into effect on a specific calendar day. You could also have it activate when a certain condition is met, such as when you leave the country for an extended trip.
Some powers of attorney only activate when the the principal becomes incapacitated. These are referred to as a “springing power of attorney.”
You have wide discretion to determine when and how your general power of attorney activates.
Discuss your goals and your plans for the future when you meet with a lawyer, and they can provide you with suggestions. Your lawyer will be able to recommend whether to have your general power of attorney activate immediately, to delay its activation until a specific date, or to have it lie dormant until it is needed under specific circumstances.
Your general power of attorney is indefinite unless you specify an end date or a condition that would cause it to end.
Options for determining the end of your agent’s attorney-in-fact status can include a specific:
You can revoke power of attorney any time you still have the capacity to do so. Revocation requires that you create and sign a new document specifying the agent you want to remove or powers you want to revoke. As before, you should strongly consider signing the document in the presence of a notary public.
All powers of attorney cease to be active once the principal has died. At this point, the personal representative of the principal’s estate (also known as the executor) will assume control of the principal’s finances and other matters.
Some powers of attorney deactivate the moment the principal becomes medically incapacitated. A durable power of attorney does not.
In New Mexico, a general power of attorney is assumed to be durable, unless the principal indicates they want it to terminate when they are incapacitated (NM Stat § 45-5B-104).
If you consent to the general statutory powers of attorney granted under New Mexico’s version of the uniform law (see NM Stat §45-5B-201 – §45-5B-217), then your agent will have the authority to manage the following:
With this power, your agent can buy, sell, transfer, lease, exchange, or receive property. They can also modify it, such as through partitioning or subdividing it.
They have the right to hire labor and purchase supplies for the purposes of modifying, repairing, or improving the property.
They can purchase insurance for the property.
They can exercise voting rights in connection with ownership of the property, such as during an HOA meeting.
Your agent can also consent to easements or otherwise dedicate some or all of the property to public use.
Your agent can buy, sell, transfer, receive, or gift tangible personal property. They can also use the property as collateral for a loan or purchase insurance to protect it.
You agent can open, close or modify investment accounts as well as the stocks, bonds, and other contents within them. They can also use securities as collateral for a loan or exercise voting rights in connection with share ownership.
Your agent has the power to use, modify, open, or close accounts in the same manner as those involving securities.
Your agent can open, modify, or close accounts in your name. They can contract for financial services, as well, such as by purchasing a safety deposit box or hiring someone to manage funds for an investment account.
The agent can deposit or withdraw money and receive any disclosures, such as bank statements, related to the account. They can furnish payment for services and goods from your account by check, credit purchase, or transfer of funds. They can also apply for new lines of credit or loans, potentially using your property as collateral.
Your agent has all the same powers as you in regards to the operation of any business in which you hold a significant ownership stake. That includes forming new contracts or voting using your portion of ownership.
They can also buy, sell, enlarge, reduce, or terminate some of your ownership interest.
If they choose, they can invest additional capital into the business, reorganize the business, and engage in its sale to (or merger with) another business entity.
Your agent can pay your premiums, modify your coverage, terminate contracts, purchase new policies, and surrender the contract for its cash value to another owner. They also have the authority to collect benefits or annuities associated with your accounts.
Your agent acts with the same authority as you when choosing to manage or make changes to a trust or an estate that you have a controlling interest in.
Your agent can file a legal claim on your behalf and manage any ongoing claims, lawsuits, or other litigation. They have the right to seek a court order in connection with your interests, such as requesting an order to evict a tenant renting a property you own.
Your agent can receive money in connection with a claim or other legal arrangements.
Your agent has the authority to pay child support and spousal support and make other ongoing payments required for your family to continue their current living situation. They can pay for care associated with any family member’s health.
Your agent is also allowed to free up money to pay for any other necessary expenses, such as to replace a inoperable vehicle, through the sale of interests or modification of accounts.
Your agent can communicate with governmental programs on your behalf to receive benefits, correspondence, or other information pertaining to your ongoing interactions with the agency.
They can also request assistance, modify current benefits, provide information on request, and perform other activities necessary to sustain your finances and means of living.
Your agent has full access to your retirement accounts, including the ability to withdraw funds, modify beneficiaries, open new accounts, close existing ones, and alter your positions within the accounts through the purchase, sale, or transfer of securities and other investments.
Your agent can file taxes on your behalf, correspond with tax agencies, receive refunds, structure payment plans, and create, modify, or terminate agreements in connection with your tax obligations.
Your agent can give gifts from your personal possessions or other interests and also receive gifts on your behalf.
Your agent is specifically barred from taking any actions that would significantly diminish your estate (see NM Stat §45-5B-201). These actions can include taking the bulk of your interests and:
In addition, they cannot waive your right to be a beneficiary or receive survivor benefits for certain accounts. They also cannot delegate the authority granted to them to another party through a secondary power of attorney arrangement.
As you can see, giving someone a general power of attorney means they gain broad control over most aspects of your life. You should only appoint someone you trust to work as your agent, but you should also think carefully about the powers you give them.
New Mexico Financial & Family Law can help you review all of the powers your agent is expected to have under a general power of attorney arrangement. We can help you determine which ones are needed for your goals and which ones you may want to restrict or remove.
You can also learn the best way to structure your general power of attorney, such as by delaying its start or causing it to terminate in response to certain conditions.
Learn more, and create the perfect general power of attorney arrangement for your needs, when you meet with a New Mexico lawyer. Schedule your no-obligation case review today when you call 505-503-1637 or contact us online.
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