Montana — What Powers Does a Financial Power of Attorney Grant an Agent?

Detailed Answer — How a Financial Power of Attorney Typically Works in Montana

A financial power of attorney (POA) lets you name an agent (also called an attorney-in-fact) to handle your financial affairs if you cannot or do not want to manage them yourself. Under Montana law, a properly executed POA can be durable so it remains effective if you become incapacitated. The Montana Code contains the state’s probate and related statutory framework; see the Montana Legislature’s code site for the official text: https://leg.mt.gov/bills/mca/.

Kinds of authority a financial POA commonly grants

When you give someone financial authority in Montana, you can grant broad or limited powers. Common powers include the authority to:

• Access, open, close, and manage bank and brokerage accounts; deposit and withdraw funds; endorse checks.
• Collect income, retirement, Social Security, or pension benefits and manage direct deposits.
• Pay bills, taxes, and routine household expenses on your behalf.
• Buy, sell, manage, repair, mortgage, or lease real estate and personal property (note: many real estate transactions also require notarized documents and may require recording in county records).
• Invest and reinvest assets, change investment allocations, and manage portfolio accounts consistent with any instructions you provide.
• Apply for government benefits and respond to government agencies about your finances.
• Settle claims, pursue litigation involving your financial interests, and negotiate or sign contracts tied to property or finances.
• Make gifts or transfers of property, but only if your POA explicitly authorizes gifting — many institutions and some legal acts require specific language to allow gifts or transfers.
• Create, modify, or revoke certain trusts on your behalf, but only if the POA expressly permits this power.

Durability and timing

You decide whether the POA is durable. A durable POA includes language that keeps the agent’s authority effective even if you lose capacity. Without that language, the agent’s authority usually ends if you become incapacitated. You can also create a “springing” POA that only becomes effective when a specified event occurs (for example, a physician certifies incapacity). Because banks and third parties vary in how they accept springing POAs, many people choose a durable POA that becomes effective immediately or one that contains clear conditions for activation.

Limits and things an agent cannot do

An agent must act within the powers you gave and cannot:

• Make or change your will. A power of attorney cannot give an agent the legal power to execute or revoke a last will and testament for the principal.
• Make health-care decisions unless a separate medical advance directive or health-care POA authorizes that role.
• Act in ways contrary to your express instructions or that benefit the agent at the principal’s expense. Agents owe fiduciary duties to the principal and must act in good faith and in the principal’s best interest.

Agent duties and safeguards

Under general fiduciary principles (and as reflected in Montana practice), an agent must:

• Act loyally and honestly for your benefit, avoiding conflicts of interest.
• Follow any instructions you include in the POA and act within the scope of granted powers.
• Keep accurate records and, when appropriate, provide accounting to interested parties or a court.
• Not commingle principal assets with the agent’s own funds.

Execution formalities and acceptance by third parties

Montana recognizes signed POA documents, but many banks, title companies, and government agencies will require an original or a notarized/acknowledged copy. Real estate transactions typically require notarization and may require recording in the county clerk and recorder’s office to be effective against third parties. Because acceptance procedures vary, you should verify the form and execution requirements with financial institutions or a Montana attorney before relying on a POA for specific transactions. For Montana’s official statutory code, start at the Montana Legislature site: https://leg.mt.gov/bills/mca/.

Helpful Hints

• Pick a trusted agent. Choose someone who will act honestly, keep good records, and follow your wishes. Name a successor agent in case your first choice cannot serve.
• Be specific about powers. If you want the agent to be able to make gifts, create trusts, or handle retirement accounts, state that expressly in the document.
• Make the POA durable if you want it to continue after incapacity. Use clear durable language so third parties accept the form.
• Notarize and keep originals. Many banks and real estate transactions require notarized originals. Keep the original in a safe place and give copies to your agent and trusted family members.
• Tell institutions in advance. Notify banks, investment firms, and title companies where you hold assets so they know whom to contact if the agent needs to act.
• Retain a backup plan. Consider a conservatorship or guardianship only if you do not have an effective POA. Guardianship can remove choice and is often more costly and public.
• Keep inventories and receipts. Require your agent to track transactions and keep receipts — this protects both you and the agent if questions arise later.
• Review and update. Revisit your POA when your family, finances, or preferences change. Revoke a prior POA in writing when you want a new one to control.
• Use local forms or get legal help. Montana institutions sometimes accept standardized durable POA forms, but complex situations (large estates, business ownership, special needs planning) benefit from a tailored document prepared or reviewed by a Montana attorney.

If you want to read Montana’s statutes or official rules, begin at the Montana Legislature code site: https://leg.mt.gov/bills/mca/. For court forms and self-help resources, see the Montana Judicial Branch site: https://courts.mt.gov/.

Next steps: If you want a durable financial POA that will work in Montana and be accepted by banks, or if your situation involves gifts, trusts, or real estate, consult a licensed Montana attorney to draft or review the document and to explain notarization and recording requirements.