Detailed answer

Short answer: In Delaware a principal (the person giving authority) can grant an agent (the attorney‑in‑fact) broad financial powers by signing a properly executed power of attorney (POA). Those powers commonly include managing bank accounts, paying bills, signing tax returns, handling real estate transactions, managing investments, running a business, accessing safe‑deposit boxes, and hiring professionals. A POA can be durable (stays effective if the principal becomes incapacitated) and can be limited, broad, or springing. However, some actions have special rules or outside limits—federal benefits, making or revoking a will, and some institutional policies may restrict what an agent can do while the principal is incarcerated.

How Delaware law controls powers granted by a POA

Delaware has adopted a Uniform Power of Attorney statute that sets the baseline rules for what a power of attorney can do and how it must be executed. For the statutory text and procedural rules, see Delaware Code, Title 12, Chapter 49: delcode.delaware.gov/title12/c049. The statute explains agent duties, the effect of a durable clause, execution requirements, and the principal’s ability to limit or expand authority.

Common financial powers that can be granted (examples)

• Bank account management — deposit and withdraw funds, endorse checks, open and close accounts, and manage online banking access.
• Bill payment and budgeting — pay household bills, contractors, and recurring obligations to avoid default while the principal is incarcerated.
• Tax matters — prepare, sign, and file federal and state income tax returns and represent the principal before tax authorities (subject to IRS/DE rules).
• Real estate transactions — buy, sell, lease, mortgage, or manage real property on the principal’s behalf (often requires notarization and sometimes recording of the POA).
• Investment management — buy and sell stocks, bonds, mutual funds, and manage brokerage accounts.
• Business operations — run or wind down a business, sign contracts, and make payroll decisions if the business documents allow it.
• Access to safe‑deposit boxes and records — obtain documents or cash that the principal has placed in secure storage.
• Paying for care or services — arrange and pay for care, legal fees, or other services the principal needs.
• Borrowing and lending — obtain loans or refinance, if the POA explicitly authorizes borrowing and banks accept it.
• Litigation and legal proceedings — initiate or defend lawsuits on financial matters if authority is expressly granted.

Important limits and special rules to know

• Durability vs. incarceration: A durable POA remains effective if the principal becomes incapacitated. Incarceration itself is not incapacity; a POA that is properly executed and durable generally remains valid while the principal is in jail or prison. The Delaware statute addresses durability and agent authority; see the chapter link above.
• Federal benefit programs: Social Security and Supplemental Security Income (SSI) have separate federal rules when a beneficiary is incarcerated. Benefits may be suspended during incarceration or handled by a representative payee system rather than a POA. Check federal agencies directly: ssa.gov and va.gov.
• Institutional policies: Banks, brokerages, and state/federal agencies can impose their own requirements (notarization, original document, bank forms, or additional ID). Some institutions are cautious when a principal executes a POA while incarcerated and may ask for extra proof of voluntariness or competency.
• Gifts and self‑dealing: Large transfers or gifts to the agent should be handled carefully. A POA can authorize gifts only if the document expressly permits it and the agent complies with fiduciary duties. Delaware law imposes duties on the agent to act in the principal’s best interests.
• Actions a POA cannot perform: An agent generally cannot sign a will or make testamentary changes for the principal. Certain beneficiary designations, trusts, and retirement account rules may require the principal’s own signature or follow plan rules. Criminal acts or attempts to conceal assets to evade creditors or sentencing consequences are illegal and not protected by a POA.
• Recording for real estate: If the agent will convey or mortgage real property, many counties require a notarized POA and may require recording the document with the Recorder of Deeds. Check local recording requirements.

Practical example (hypothetical)

Hypothetical: Jane (a Delaware resident) is arrested and expects to be jailed for several months. To avoid missed mortgage payments and to keep her rental property rented, she executes a durable financial POA giving her sister authority to pay bills, manage her rental, collect rent, and handle bank accounts. Jane signs the document while competent, has it notarized, and gives the sister certified copies to present to the mortgage company, banks, and the rental agent. The sister is able to keep the mortgage current and manage the rental property legally. If Jane had tried instead to use a POA to transfer all funds to avoid a pending lien or to change beneficiaries on retirement accounts, those actions could be restricted by plan rules, subject to challenge, or possibly illegal.

How to make a POA work smoothly while incarcerated

1. Use clear, durable language. Make the POA durable so it continues if the principal becomes incapacitated.
2. List specific powers you want the agent to have, including authority over bank accounts, real estate, taxes, and business operations.
3. Notarize the POA and follow any witnessing requirements. Notarization removes many administrative objections from banks and registrars.
4. Provide certified copies to banks, mortgage companies, and other institutions the agent will contact. Record the POA if it will be used for real estate transactions.
5. Confirm institutional rules before relying on the POA (banks, Social Security, VA, brokerage firms). Each may have different acceptance practices.
6. Keep detailed records of all transactions. The agent must account for actions and keep receipts and statements.
7. Limit gifting and self‑dealing unless specifically authorized and appropriate; large or unusual transfers draw scrutiny.
8. Consider consulting a Delaware attorney for complex matters like business continuation, large real estate transfers, or contested powers.

Where to get forms and help

Delaware’s statutory provisions for powers of attorney and agent duties are found at Delaware Code, Title 12, Chapter 49: delcode.delaware.gov/title12/c049. For federal benefit questions, visit the Social Security Administration (ssa.gov) or the Department of Veterans Affairs (va.gov).

Disclaimer

This information is educational only and is not legal advice. It summarizes general principles of Delaware law and common practice. Every situation is different. To confirm how a power of attorney should be drafted or used for a person who is incarcerated, consult a licensed Delaware attorney who can review the facts and draft documents tailored to the principal’s needs.