Santa Fe General Power of Attorney

A general power of attorney gives someone nearly complete authority to handle any legal or financial matter that you could, with a few exceptions. The person who receives this authority is known as an agent, proxy, or attorney-in-fact. The person issuing it is referred to as a principal.

State laws provide that a typical power of attorney in Santa Fe grants your agent this general authority. You can also choose to limit their authority, creating a “limited,” instead of a “general,” power of attorney.

Both types of powers of attorney can be useful in different situations. To determine what the best arrangements could be with consideration for your goals and long-term plans, you can speak to an experienced lawyer in Santa Fe. They’ll help you understand whether a limited or general power of attorney makes the most sense for you when it comes to estate planning, incapacity planning, and other critical strategies.

You can schedule a confidential, no obligation case review with our Santa Fe law firm to discuss general power of attorney at any time by calling (505) 503-1637 or contacting us online.

How Does a General Power of Attorney Work in Santa Fe?

Issuing a general power of attorney allows someone else to handle sensitive business and legal matters in your place. It basically says to banks, government institutions, and other parties: “Hey! If you need to talk to me, you can talk to this person instead.”

Your agent’s authority should be recognized across a broad range of situations, including ones that would normally require your signature. Note that you may need to complete, sign, and submit specific paperwork before certain banks, investment firms, and other businesses will permit your agent to access your accounts and handle your affairs. 

States that have passed the Uniform Power of Attorney Act — including New Mexico — may automatically furnish a general power of attorney any time the principal uses a statutory POA form and neglects to explicitly restrict or define the agent’s powers (NM Stat. § 45-5B-202). Any restrictions applied make the document a “limited power of attorney,” rather than a general one.

Executing a General Power of Attorney in Santa Fe

To make a general power of attorney effective, the principal must first be over the age of 18 or an emancipated minor. They must also have the mental capacity to understand what effect the power of attorney will have, including the authority it grants their agent.

If the principal meets these requirements, they can write a document (or use a pre-written one) that explicitly states their intention to delegate authority to a specific agent. They must then sign the written document.

State law suggests that the principal should sign the document in the presence of a notary (NM Stat § 45-5B-105), who can then certify that the document is genuine. While the law does not explicitly require New Mexico POA notarization, it can avoid the need for witnesses or other evidence in a situation where someone questions the signature’s authenticity.

What It Means for a General Power of Attorney to Be Durable

A durable power of attorney remains effective even after the principal has become incapacitated. This ability makes it useful in situations where the principal is unable to manage their own affairs. For example, they may enter a coma after a serious accident. Or, they could develop a mentally debilitating medical condition, leaving them unable to make sound financial decisions. 

Normally, a loved one or trusted advisor would need to obtain guardianship or conservatorship over the incapacitated person before they could access their accounts and make decisions on their behalf. A durable financial power of attorney authorizes someone to handle their affairs without a court proceeding.

An individual does not need to decide between a general vs. durable POA, either, as their document can be both. However, they should go over the types of situations they want to prepare for to ensure that they are giving their agent only the needed level of authority. A Santa Fe estate planning lawyer can help you map out the situations you want to prepare for and determine whether a limited or general power of attorney would be appropriate.

Springing Power of Attorney

Some durable powers of attorney only activate when the principal has become incapacitated. These documents are commonly referred to as “springing” powers of attorney.

For the purposes of activating the document, state law (NM Stat § 45-5B-102) defines incapacitation as a situation where the principal:

• Grossly mismanages their finances
• Cannot manage their finances because of a medical condition
• Is missing
• Is detained or incarcerated
• Is unable to return to the United States after leaving the country

The principal can optionally list other conditions that could reveal their incapacity, such as a finding of mental decline during a medical evaluation.

Because of the need to demonstrate the principal’s incapacity, a springing power of attorney can introduce delays or even litigation. Therefore, it may not be recommended for all situations. You can refer to an experienced lawyer to discuss your options for power of attorney in Santa Fe and decide upon the best arrangements given your goals and expectations.

When Is a General Power of Attorney Considered Active?

Unless the principal defines a specific time or condition that would activate their general power of attorney, the document activates as soon as it is executed (NM Stat § 45-5B-109). It remains effective until the principal dies, revokes the agent’s authority, or revokes the document (NM Stat § 45-5B-110).

The principal can also define conditions that could cause the agent’s authority to be revoked automatically. Examples of common revocation conditions include:

• The incapacitation of the principal (i.e., a non-durable general power of attorney)
• The completion of a specific task (e.g., the transfer of the principal’s ownership share in a business partnership to another party)
• The lapsing of a defined period of time (e.g., two years after the document’s activation)
• The notification of the agent by the principal that their authority has been terminated
• The existence of proof that the agent violated their fiduciary duties

The principal can also perform a “revocatory act,” destroying the original document. However, revocation of a general power of attorney should, ideally, be done in writing, even if it was technically accomplished through other previous means. For additional legal protections, the principal can sign the revocation document and have it notarized.

You can meet with a Santa Fe attorney to discuss what general power of attorney arrangements could work best, including how the document can be revoked in a way that prevents confusion — or even financial abuse.

What Authority Does a General Power of Attorney Provide in Santa Fe?

A general power of attorney gives an agent all of the powers described in New Mexico Statutes Amended Chapter 45 Article 5B Section 203–217. These powers grant the agent authority in the following matters:

• Real estate (NM Stat. §  45-5B-204)
• Personal property (NM Stat. §  45-5B-205)
• Stocks and bonds (NM Stat. §  45-5B-206)
• Commodities and options (NM Stat. §  45-5B-207)
• Accounts with banks and other financial institutions (NM Stat. §  45-5B-208)
• Operating a business or other entity (NM Stat. §  45-5B-209)
• Insurance and annuities (NM Stat. §  45-5B-210)
• Estates, trusts, and other beneficial interests (NM Stat. §  45-5B-211)
• Claims and litigation (NM Stat. §  45-5B-212)
• Personal and family maintenance (NM Stat. §  45-5B-213)
• Benefits from governmental, civil, or military service programs (NM Stat. §  45-5B-214)
• Retirement plans (NM Stat. §  45-5B-215)
• Taxes (NM Stat. §  45-5B-216)
• Gifts (NM Stat. §  45-5B-217)

Below, we have listed some specific powers that apply to each category. These are meant to provide examples, rather than an exhaustive list. Accordingly, refer to the appropriate statute and consult with an experienced legal team in Santa Fe to understand how a general power of attorney might fit within your estate plan.

Real Estate

• Buy, lease, sell, or exchange property
• Receive or accept property as a gift or as a form of repayment
• Make agreements or arrangements in connection with property rights, such as partitioning a plat or granting an easement
• Take out or make payments for a mortgage
• Insure a property, close a policy, or modify its coverage
• Build or raze structures
• Modify a title

Personal Property

• Buy, sell, or receive tangible property
• Use property as collateral for a secured debt
• Insure the property against loss
• Demand payment or repossession in connection with a property interest
• Make repairs, improvements, or alterations to property 

Stocks, Bonds, Options, Other Securities, Commodities

• Create, close, or modify an investment account
• Buy, sell, or trade securities and commodities
• Use investments as collateral for a loan or margin trade
• Request certificates as proof of stock ownership
• Exercise voting rights in connection with ownership shares

Accounts With Banks and Other Financial Institutions

• Open, close, or modify a banking account, loan, or other arrangement
• Withdraw, deposit, or transfer funds to/from an account
• Rent a safe deposit box or enter into a contract to receive other services from a financial institution
• View account statements, receipts, and other documents
• Access a safe deposit box to add to or withdraw from its contents
• Use checks, promissory notes, or other methods to transfer a cash interest
• Use, apply for, close, or modify a line of credit, including a credit card
• Request an extension, pursuant to an obligation connected to a financial account or line of services

Operating a Business or Other Entity

• Buy, sell, increase, reduce, terminate, or otherwise modify a business ownership interest
• Operate the business, including performing any duties or exercising abilities pertaining to the principal’s role
• Engage in dispute resolution pursuant to a business interest
• Enter into, continue, renegotiate, extend, or terminate a business contract
• Originate, consent to, or decline a plan to convert, consolidate, or reorganize a business, including through a merger or acquisition
• Buy, sell, transfer, or exchange business property
• Perform other duties in connection with the business, including taking out a line of credit, engaging in real estate deals, depositing revenues, furnishing payroll, and handling tax obligations

Insurance and Annuities

• Create, modify, or terminate an insurance contract, including by increasing/decreasing a deductible, the amount of coverage, the cost of premiums, the type of coverage, the covered entities/parties, or other policy features
• Pay premiums
• Use accumulated interest in an insurance policy (e.g., life insurance) or annuity as collateral for a loan
• Enter into an agreement or dispute in connection with a settlement for benefits

Estates, Trusts, and Other Beneficial Interests

• Accept or exchange a distribution or principal interest
• Make requests to a trustee in connection with a beneficiary or grantor interest
• Exercise a power of appointment
• Engage in a dispute, lawsuit, or settlement discussion pertaining to a trust, including claims against or in defense of the trust
• Transfer property or another interest into the trust, if the principal were allowed to do so

Claims and Litigation

• File a claim or complaint
• Petition a court for an order or as a request for another form of relief
• Defend against litigation
• Enter into settlement negotiations, including the ability to make, deny, rescind, consent to, or modify an offer
• Appear in court and complete paperwork on the principal’s behalf
• Pay a settlement or award in connection with a case
• Receive payment from a settlement, judgment, or award

Personal and Family Maintenance

• Take necessary measures to ensure that the principal has all of their desired or required services paid for
• Take necessary measures to support the principal’s family members and other close individuals accustomed to receiving support
• Pay child support, spousal support, or other court-ordered family maintenance
• Ensure that family members and other cared-for parties have adequate access to shelter, food, transportation, clothing, alongside any other necessities or amenities required 
• Pay educational or medical expenses for family members and other loved ones
• Maintain health insurance policies for family members
• Continue payments to any clubs, service providers, health facilities, and religious institutions, in the same manner as the principal
• Make decisions to increase, decrease, or modify expenditures, according to the agent’s fiduciary duty to maintain financial solvency
• Ensure the continued comfort of family members
• Respect the principal’s other wishes to provide comfort and support to themself or their loved ones, to the extent understood by the agent

Benefits From Governmental, Civil, or Military Service Programs

• Continue, start, or exit a government program, including a benefits program or other form of governmental relief
• Engage in litigation or alternative dispute resolution in connection with a government program or entity
• Furnish or demand payments in connection with a program or entity
• Agree to a lump sum settlement for back benefits

Retirement Plans

• Open, close, or modify an IRA, Roth IRA, or custodial account 
• Enter into, leave, or modify a plan involving a pension, stock benefit, or profit-sharing
• Contribute funds to or withdraw them from a retirement account
• Make modifications to investments in an account

Taxes

• File tax forms and statements
• Pay taxes
• Receive a refund
• Negotiate with the IRS, state department of revenue, or other entity for an extension, a payment plan, or an offer in compromise
• Furnish and obtain information necessary for the reporting of tax-related matters and the maintenance of records on the principal’s behalf

Exceptions to General Power of Attorney Authority

State law (NM Stat § 45-5B-201) provides that, unless the principal specifically grants their agent the ability to do so, an agent operating under the authority of a general power of attorney may not:

• Create, liquidate, revoke, or modify a living trust
• Offer gifts that exceed the IRS annual gift exclusion amount ($19,000 in 2025)
• Create, revoke, or modify rights of survivorship or beneficiary designations
• Delegate their authority to another agent (unless it is a co-agent or successor agent authorized by the principal under the general power of attorney)
• Exercise other fiduciary powers granted to the principal (i.e., take over as the trustee of a living trust)
• Disclaim ownership rights to property, including a power of appointment
• Waive the principal’s right to a survivor benefit or a joint and survivor annuity

For more details, you can refer to an experienced Santa Fe lawyer who has experience with drafting, executing, and managing general powers of attorney.

Make Arrangements for Your Power of Attorney in Santa Fe With the Help of an Experienced Law Firm

New Mexico Financial Law can help you with decisions involving a general power of attorney. You can also rely on our legal team to tackle other critical estate planning tasks, including arranging for a healthcare power of attorney, completing an advance directive, or updating your will.

Call our offices at (505) 503-1637 to schedule your no-obligation case review.