How to Create a Power of Attorney in Texas

A power of attorney is a legal tool that lets you appoint someone to handle your affairs if you become unable to do so yourself. Texas makes establishing power of attorney relatively straightforward with standard forms available for financial matters and healthcare decisions.

A financial advisor can discuss whether a power of attorney should be part of your financial preparations.

Texas Power of Attorney Fundamentals

A power of attorney document grants legal authority to an agent or attorney-in-fact to act on your behalf as the principal. The most common situations involving powers of attorney are when someone becomes seriously ill or disabled and needs help handling their affairs. Powers of attorney are basic parts of most estate plans.

Without a valid power of attorney in place, if you became unable to make decisions your family would have to go to court to seek a guardianship or conservatorship. This process can be costly, time-consuming, divisive and public. In addition, healthcare providers may refuse non-emergency treatment if no one has legal standing to consent on your behalf as a medical power of attorney.

Like other states, Texas has several types of power of attorney, including general, limited, durable, springing and medical powers of attorney. A general power of attorney provides broad authority to handle matters like real estate transactions, taxes, business interests and investments. A limited or special power of attorney confines the scope to specific matters or timeframes.

Durable powers of attorney remain valid if you become incapacitated, while springing ones only take effect if you become disabled or ill. Medical powers of attorney specifically cover healthcare decisions when you can’t communicate your wishes.

Getting a Texas Power of Attorney

A woman preparing paperwork for a power of attorney in Texas.

You can generate your own legally valid Texas power of attorney without paying an estate planning lawyer. Follow these five common steps to create a power of attorney in Texas:

Decide what powers you want to delegate and choose someone trustworthy as your agent. Give this some thought. Consider talking to an attorney if you are giving broad control over your finances.
Get the appropriate state form online or from a legal library or office supply store. The Texas Health and Humans Services website includes downloadable statutory durable power of attorney and medical power of attorney forms.
Make any adjustments that are necessary to the standard language. For instance, if you want a financial durable power of attorney to continue even if you become disabled, you would modify the form to say: “This power of attorney is not affected by subsequent disability or incapacity of the principal.”
Formally execute the document by signing it before a notary public. You must be a legal adult, over age 18, and of sound mind when signing.
If you want the agent to handle real estate decisions, you have to file real estate powers of attorney with the counties where any property is located. You don’t have to do this for the other types of power of attorney.

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Texas Power of Attorney Limitations

While powers of attorney offer important protections and grant significant powers, they have limitations. Here are five to keep in mind:

A power of attorney ends when you pass away or if a court names a guardian to handle your affairs due to your incapacity.
Your agent can’t force you to do anything or override your decisions. Powers of attorney exist to carry out your last wishes.
You can revoke a power of attorney any time as long as you are of sound mind. You should do this in writing.
If someone suspects financial abuse or has other reasonable concerns they can decline the agreement.
Special requirements apply if you get divorced and want to retain a former spouse as your agent.

What to Do if Someone Refuses to Accept Your Power of Attorney

The article above notes that no one must accept a power of attorney if they have reasonable concerns. In practice, refusals happen more often than most people expect, and they tend to come at moments when the agent urgently needs to act.

Banks, brokerage firms, and other institutions may decline to honor a power of attorney for a number of reasons. The document may be several years old, raising questions about whether it’s still in effect. The language may not specifically cover the transaction the agent is requesting. The institution may prefer its own internal power of attorney form over the statutory version. Or the employee reviewing the document may not be familiar enough with Texas law to feel comfortable accepting it.

Texas law does provide some protection in these situations. The Texas Estates Code requires third parties to accept a properly executed statutory power of attorney within a reasonable time. If an institution refuses without a valid legal basis, the agent can seek a court order compelling acceptance. The party that refused may also be held responsible for the attorney’s fees and estate planning costs involved in obtaining that order.

Next Steps

If your power of attorney is refused, a practical first step is to ask the institution to explain the reason in writing. This helps clarify whether the problem is with the document itself or with the institution’s internal process. If the document is valid and properly executed, referencing the relevant provision of the Texas Estates Code may be enough to resolve the issue. If it isn’t, an attorney can advise on whether seeking a court order makes sense given the circumstances.

There are also steps you can take ahead of time to reduce the chance of a refusal. Using the Texas statutory form makes it more likely that institutions will recognize and accept the document. Keeping it current rather than relying on one signed a decade ago also helps. Some people choose to present the document to their bank, brokerage firm, or other key institutions in advance, before it’s actually needed, so it’s already on file when the agent needs to use it. For financial accounts specifically, completing the institution’s own proprietary form in addition to the statutory document can further reduce friction.

Medical power of attorney refusals can also occur. A healthcare provider may decline to follow a directive if they have a conscience-based objection to a specific treatment decision. In those cases, Texas law generally requires the provider to make reasonable efforts to transfer the patient to another provider willing to honor the directive. Knowing this possibility exists in advance gives families time to identify backup options rather than scrambling during a medical event.

Bottom Line

A senior preparing a power of attorney with a financial advisor in Texas.

Texas powers of attorney enable trusted relatives or friends to step in when you can’t handle matters yourself. The process of getting a power of attorney in Texas is simple and inexpensive. Standard forms are readily available for no fee and legal advice is not generally required. However, a power of attorney is a legal document that hands the agent you designate significant power over your affairs. Therefore, it requires careful thought when selecting your agent and tailoring the document.

Estate Planning Tips for Beginners

Schedule a consultation with a financial advisor to discuss how a power of attorney coordinates with your overall estate plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
SmartAsset’s guide to estate planning briefly describes the overall purpose and process of arranging for the disposition of your property and assets after death.