Powers of Attorney in Connecticut
Powers of Attorney in Connecticut
Connecticut’s power of attorney law is found at CGS 1-350 et seq., the Connecticut Uniform Power of Attorney Act, effective October 1, 2016. This act replaced the old Chapter 802e provisions (CGS 45a-562 et seq.), which are now repealed. If you are working from a form or template that references Chapter 802e or section 45a-562, that form is outdated.
A power of attorney is a legal document in which one person (the principal) authorizes another person (the agent) to act on the principal’s behalf in financial and legal matters. It does not authorize health care decisions; those require a separate health care directive under CGS 19a-575a.
The Two Statutory Forms
CGS 1-352 provides two statutory forms: a short form and a long form. Both are “durable,” meaning they remain effective if the principal becomes incapacitated.
Short Form (Categories A Through N)
The short form covers 14 categories of authority:
- (A) Real property
- (B) Tangible personal property
- (C) Stocks and bonds
- (D) Commodities and options
- (E) Banks and other financial institutions
- (F) Operation of entity or business
- (G) Insurance and annuities
- (H) Estates, trusts and other beneficial interests
- (I) Claims and litigation
- (J) Personal and family maintenance
- (K) Benefits from governmental programs or civil or military service
- (L) Retirement plans
- (M) Taxes
- (N) All other matters
The principal strikes out and initials any category they want to exclude. Eliminating any of categories A through M automatically eliminates category N.
Each lettered category incorporates by reference a detailed statutory section (CGS 1-351c through 1-351p) that defines the scope of the agent’s authority. When the principal checks “Real property,” for example, the agent receives all the authority described in CGS 1-351c, as if the full text of that section were written into the document.
Long Form (Categories A Through W)
The long form includes all 14 short-form categories plus nine optional estate planning powers (O through W). These additional powers require the principal to affirmatively initial each one:
- (O) Create, amend, revoke, or terminate an inter vivos trust
- (P) Make gifts (subject to annual gift tax exclusion limits unless otherwise specified)
- (Q) Create or change rights of survivorship
- (R) Create or change a beneficiary designation
- (S) Waive the principal’s right to a survivor annuity benefit
- (T) Exercise fiduciary powers the principal may delegate
- (U) Disclaim or refuse an interest in property
- (V) Exercise powers over digital devices and digital assets
- (W) Act with respect to intellectual property interests
The long form is generally the better choice for comprehensive estate planning. Without category P, for example, the agent cannot make gifts to family members, which may be needed for Medicaid planning or annual exclusion gifting. Without category O, the agent cannot fund or modify a trust.
Execution Requirements
A valid Connecticut power of attorney must be:
- Signed by the principal. The principal’s signature is essential.
- Witnessed by two people. Two witnesses must sign the document.
- Acknowledged (notarized). The principal must acknowledge the document before a notary public or commissioner of the Superior Court, in the manner prescribed for a conveyance of real property.
All three requirements must be met. A power of attorney that is signed and notarized but lacks two witnesses is defective. Banks and financial institutions will (and should) reject it.
Durability
Under the Uniform Power of Attorney Act, all powers of attorney are durable unless the document states otherwise (CGS 1-350b). “Durable” means the agent’s authority survives the principal’s incapacity. This is a change from older law, where durability had to be expressly stated.
If you want a non-durable power of attorney (one that terminates upon your incapacity), you must say so explicitly in the document. Non-durable powers are uncommon in estate planning practice because the whole point of most POAs is to have someone who can act when you cannot.
Springing Powers
The principal may provide that the power of attorney takes effect only upon the occurrence of a specified contingency, such as a physician’s determination of incapacity (CGS 1-352(d)). This is called a “springing” power of attorney.
Springing powers are permitted but create practical problems. The agent must present proof that the triggering event has occurred before any third party will accept the document. This can delay action at the very moment speed matters most. Many practitioners recommend an immediately effective POA instead, paired with a trusted agent.
Agent Duties and Liability
An agent under a Connecticut power of attorney owes fiduciary duties to the principal. These are spelled out in the Act and in the optional informational form (CGS 1-352(e)):
- Act in accordance with the principal’s reasonable expectations, or if unknown, in the principal’s best interest
- Act in good faith
- Stay within the authority granted
- Act loyally and avoid conflicts of interest
- Act with care, competence, and diligence
- Keep records of receipts, disbursements, and transactions
- Cooperate with the principal’s health care representative
- Attempt to preserve the principal’s estate plan
CGS 1-350n addresses exoneration clauses. A POA may include a provision relieving the agent of liability for breach of duty, but such clauses are unenforceable if the breach was dishonest, motivated by improper purposes, or committed with reckless indifference to the principal’s interests.
Judicial oversight is available. Under CGS 1-350o, a broad range of interested persons (including the principal, the agent, family members, presumptive heirs, and the Department of Social Services) may petition the Probate Court to review the agent’s conduct.
Agent’s Limitation on Self-Dealing
A critical default rule: the agent may not use the principal’s property to benefit the agent or the agent’s dependents unless the principal specifically authorizes it. Both the short form and long form include this limitation. If the principal wants the agent to be able to pay themselves a fee, make gifts to themselves, or use principal’s funds for their own benefit, that authority must be expressly granted in the special instructions section.
Third-Party Acceptance
One of the most practical features of the Uniform Power of Attorney Act is its third-party acceptance framework (CGS 1-350r, 1-350s).
A person presented with an acknowledged power of attorney must either accept it or request a certification, translation, or opinion of counsel within seven business days (CGS 1-350s). After receiving any requested documentation, they have five more business days to accept.
A person who refuses in violation of these rules is subject to a court order mandating acceptance, and the court may award attorney’s fees and costs to the prevailing party. This provision was designed to address the common problem of banks and financial institutions refusing to honor valid powers of attorney.
There are six statutory exceptions that permit refusal:
- The principal is not eligible for the transaction
- The transaction would violate state or federal law
- The person has actual knowledge the POA is terminated
- A requested certification or translation was refused
- Good faith belief the POA is invalid or the agent lacks authority
- A report of suspected abuse has been filed with the Department of Social Services
Recognition of Out-of-State Powers of Attorney
Connecticut adopted the Uniform Recognition of Substitute Decision-Making Documents Act (CGS 1-360 through 1-369), effective October 1, 2017. This act facilitates acceptance of powers of attorney and similar documents executed in other states.
A power of attorney validly executed under the law of another state should generally be accepted in Connecticut. However, for certain transactions (particularly real property conveyances), Connecticut-specific forms are strongly preferred. A New York statutory short form POA, for example, may face resistance from a Connecticut title company or town clerk.
Choosing an Agent
The choice of agent matters more than the form of the document. Consider:
Trustworthiness above all. The agent will have access to your bank accounts, investments, and real property. Choose someone whose integrity you trust completely.
Availability. The agent needs to be reachable and willing to spend time on your affairs. A relative who lives overseas or who travels constantly may not be practical.
Financial competence. The agent does not need to be a CPA, but they should be comfortable managing money and keeping records.
Willingness to serve. Ask before you name someone. Being named as an agent is a serious responsibility, and the person should understand the duties involved before accepting.
Successor agents. Both statutory forms allow you to name successor agents. If your first choice cannot serve, the successor steps in without the need for a new document.
Termination
A power of attorney terminates when the principal dies, when the principal revokes it, when a court invalidates it, when the purpose is accomplished, or when a termination event specified in the document occurs. If the agent and principal are married and a divorce or annulment action is filed, the agent’s authority terminates unless the POA provides otherwise.
Revocation should be in writing. The principal should notify the agent, any third parties who have been dealing with the agent, and any institutions holding copies of the POA.
Periodic Review
A power of attorney does not expire in Connecticut (unless the document includes an expiration date). But circumstances change. Review your POA whenever you would review your will: after marriage, divorce, a move, a major change in assets, or the death or incapacity of your named agent.
For the health care equivalent of a power of attorney, see health care directives in Connecticut. If a power of attorney is insufficient and court-supervised protection is needed, see conservatorship in Connecticut and alternatives to conservatorship.