Detailed Answer — How a Michigan power of attorney can handle finances while you are incarcerated

In Michigan, a principal (the person who grants authority) can give an agent (an attorney-in-fact) broad financial powers through a power of attorney (POA) so the agent can manage money and property while the principal is incarcerated — provided the POA was executed properly while the principal was mentally competent. A properly drafted, notarized and witnessed durable POA lets the agent act immediately or at a future triggering event (for example, incarceration or incapacity), depending on the wording chosen.

Michigan’s statutory framework for powers of attorney is found in the Michigan Compiled Laws; a commonly used starting reference is the statute series for powers of attorney (see MCL 700.5501 et seq.). You can read the statute text on the Michigan Legislature website: MCL 700.5501 et seq.

Common financial powers that can be granted and how they work in practice

• Banking and cash management: Authority to access, deposit to, withdraw from, and close bank and credit union accounts; to endorse checks; to manage day-to-day cash needs; and to set up or cancel automatic payments.
• Bill payment and budgeting: Power to pay monthly living expenses, utilities, credit cards, mortgages, car loans and other debts on behalf of the principal.
• Property and real estate transactions: Authority to sell, lease, mortgage, or manage real property. Note: properly transferring or recording deeds may require additional steps (recording the POA with the county register of deeds or following lender requirements).
• Investment and financial account management: Buying, selling, or managing stocks, bonds, mutual funds, retirement accounts (subject to plan rules), and other investments. Some financial institutions require their own forms in addition to a POA.
• Tax matters: Authority to prepare, sign, and file federal and state tax returns, to represent the principal before taxing authorities, and to handle refunds or tax payments.
• Collecting income, rents, and benefits: Authority to collect rent, wages, business income, and other payments. Note: representative relationships for government benefits (for example, Social Security representative payee) are handled through federal or state benefit agencies, not solely by a private POA — see the SSA for Representative Payee rules: https://www.ssa.gov/payee/.
• Business operations: Managing and operating businesses, signing contracts, paying employees, and otherwise conducting ordinary business affairs.
• Gifts and discretionary transfers: If explicitly authorized, the agent may make gifts or transfers. Because gifting can implicate taxes and creditor/Medicaid rules, it should be expressly stated and used cautiously.
• Accessing records and safe-deposit boxes: Inspecting and obtaining financial records. Safe-deposit box access often requires the institution’s acceptance of the POA and may need additional authorization or a court order in some circumstances.

Limits, requirements, and special considerations under Michigan law

• Capacity and execution: The POA must be signed by a principal with the mental capacity to understand the document at the time of signing. Michigan law addresses formalities; use a durable POA form and follow signing, witnessing and notarization rules so institutions will accept the document. See: MCL 700.5501 et seq.
• Durability and when the POA takes effect: A POA is “durable” if it states that the agent’s authority continues despite the principal’s later incapacity. A POA can be immediate or “springing” (effective upon a stated event such as a physician certifying incapacity). Springing POAs often cause practical delays because institutions sometimes refuse to accept the required medical certification.
• Institutional acceptance: Banks, title companies, lenders, and government agencies may have policies requiring a specific form or additional verification. Before relying solely on a POA, check with the relevant institution. Some actions (like transferring certain retirement accounts) follow plan or federal rules in addition to Michigan law.
• Benefits and representative roles: A POA does not automatically make the agent the representative payee for Social Security or the VA. Those agencies have separate procedures to appoint a payee or fiduciary. For SSA, see: Social Security – Representative Payee.
• Real property recording: If the agent will sign deeds or mortgages, consider recording the POA or providing a certified copy to the county register of deeds; recording requirements and acceptance vary by county.
• Prohibited acts and fiduciary duty: An agent must act in the principal’s best interest, avoid self-dealing unless expressly authorized, and follow the POA’s limits. Misuse can lead to civil liability and criminal charges.
• Incarceration-specific hurdles: While incarceration does not automatically invalidate a POA, signing or notarizing documents while in custody may be difficult. Execute the POA before incarceration when possible. If the principal must sign from custody, coordinate with the correctional facility about notary or witness availability and follow facility procedures.

Practical steps to make a POA effective while incarcerated

1. Execute a durable financial POA before incarceration when possible. Ensure it explicitly authorizes the financial tasks you want the agent to perform.
2. Choose an agent you trust. Consider appointing a successor agent in case the first agent cannot serve.
3. Notarize and have required witnesses sign the document so banks and other institutions accept it.
4. Provide certified copies of the POA to banks, mortgage companies, and county offices in advance. Ask whether they require their own POA forms.
5. If the agent must handle Social Security, SSI, VA, or similar benefits, contact the agency to apply for a representative payee or fiduciary appointment — a POA alone is not enough for those benefits.
6. Keep careful, dated records and bank statements documenting transactions made by the agent to protect both the principal and the agent.

Where to find the law and forms: Michigan’s POA statutes are available on the Michigan Legislature website: MCL 700.5501 et seq.. For federal benefit rules (representative payee), see the Social Security Administration: https://www.ssa.gov/payee/.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It is not a substitute for consulting an attorney licensed in Michigan about your specific situation.

Helpful Hints — Quick checklist and tips for principals and agents

• Execute a durable POA while competent and, if possible, before incarceration.
• Make the POA specific about powers you want the agent to have (paying bills, managing property, filing taxes, selling real estate, etc.).
• Include successor agents in case the first agent is unable or unwilling to serve.
• Have the POA notarized and witnessed according to Michigan rules so banks and title companies accept it.
• Confirm acceptance policies with banks, lenders, and county offices early — they may ask for additional documentation.
• For Social Security, SSI, or VA benefits, contact the agency to request a representative payee appointment; a POA alone is not sufficient.
• Keep copies of the POA and provide copies to institutions that the agent will deal with.
• Require the agent to keep accurate records and provide accountings when asked.
• If you expect complex transactions (selling property, business operations, large gifts), consult a Michigan attorney to draft or review the POA.