Giving someone the legal authority to make decisions on your behalf is a big step, and a power of attorney (POA) is the legal document that makes this possible. Whether you’re planning for asset management, healthcare decisions, or business matters, understanding the costs involved is an important part of your preparation.
The cost of a power of attorney varies widely depending on several factors. The main considerations are the type of POA you need and whether you choose to do it yourself or work with an attorney. Some people use online templates to save money and time, while others prefer hiring a lawyer to ensure everything is done correctly. Getting a sense of the cost range will help you make an informed decision based on your specific needs and budget.
What Is a Power of Attorney?
A power of attorney (POA) is a legal document that authorizes one person, called an agent or attorney-in-fact, to act on behalf of another person, known as the principal. People commonly use it to manage financial, legal, or healthcare matters.
Understanding the Basics
A POA ensures that someone you trust can handle your affairs if you become unable to make decisions yourself. The powers you grant can be broad or quite limited, depending on what you need. Creating a POA requires careful thought since you’re giving your agent significant authority. Keep in mind that POA requirements vary by state, so you’ll need to follow your local regulations to make sure the document is legally valid.
Types of Power of Attorney
General Power of Attorney: This gives your agent broad authority to handle your financial or legal transactions. It automatically ends if you become mentally incapacitated.
Durable Power of Attorney: Unlike a general POA, this one stays in effect even if you become incapacitated, making it ideal for long-term planning.
Special or Limited Power of Attorney: This grants authority only for specific tasks or transactions, such as selling a property or managing certain investments.
Healthcare Power of Attorney: Also called a medical power of attorney, this allows your agent to make healthcare decisions on your behalf if you’re unable to communicate or are seriously ill.
Springing Power of Attorney: This type only becomes active when certain conditions are met, such as when you become incapacitated.
Each type serves a different purpose, and the right choice depends on your individual circumstances.
Factors That Affect the Cost of a Power of Attorney
Several factors influence how much you’ll pay to create a POA. Understanding these can help you budget appropriately.
Legal Fees
Attorney fees typically represent the biggest expense. If you hire a lawyer to draft your POA, expect to pay anywhere from $150 to $500 or more. The final cost depends on the document’s complexity and the attorney’s experience level. More complicated situations, like creating a durable or healthcare POA with specific provisions, may require additional consultation time and higher fees.
Document Preparation Costs
Online platforms and software offer a more affordable option, usually ranging from $20 to $100. These services provide customizable templates, but they may not address complex legal situations as thoroughly as an attorney would.
Notary and Filing Fees
Many states require POA documents to be notarized, which typically costs $10 to $50 per signature. Some jurisdictions also require filing fees, which can add another $10 to $75 to your total cost. These fees ensure your document is legally recognized in your area.
Additional Expenses
You might also encounter costs for document storage services or certified copies, which usually run $5 to $25. If you need expedited processing, expect to pay extra. Down the road, you may also incur fees if you need to modify or revoke your POA and create a new one.
Cost of Power of Attorney by Type
The cost varies depending on which type of POA you need. Here’s what you can expect for each:
General Power of Attorney
Through an attorney, a general POA typically costs $150 to $300. This document covers a wide range of financial and legal matters. Online templates are available for $20 to $50, though they may not be as comprehensive.
Durable Power of Attorney
Since a durable POA remains valid even if you become incapacitated, it requires more careful drafting. Attorney fees usually range from $200 to $500. Online options cost about $50 to $100 but may miss important legal nuances.
Medical Power of Attorney
Expect to pay $150 to $400 if you hire an attorney to prepare a medical power of attorney. This includes customization for your specific healthcare wishes. Online services typically charge $20 to $50, though they may not include all the details needed or comply fully with your state’s requirements.
Limited Power of Attorney
A limited POA, which focuses on specific tasks or transactions, generally costs $100 to $250 through an attorney. Working with a lawyer ensures the document precisely matches your needs. DIY options are available for $20 to $40, but these work best only for straightforward situations.
Should You DIY or Hire a Lawyer?
Deciding whether to create a POA yourself or hire an attorney depends on your situation, budget, and legal needs. Both approaches have advantages and drawbacks.
The DIY Approach
Creating a POA using online software or downloadable templates typically costs $20 to $100. This option is convenient, affordable, and doesn’t require scheduling appointments with a lawyer.
Advantages:
- Significantly cheaper than hiring an attorney
- Convenient—you can complete the forms at home on your own schedule
- Works well for straightforward situations
Drawbacks:
- Generic templates may not meet your state’s specific requirements
- No professional guidance for complex decisions
- Risk of errors or missing important provisions
DIY methods work best for people with simple needs who understand POA basics. For more complicated situations, the lack of professional oversight could create problems later.
Working with an Attorney
Hiring an attorney costs $150 to $500, but you get professional expertise and peace of mind.
Benefits:
- Ensures compliance with state-specific laws
- Customized provisions for complicated family situations or unique circumstances
- Professional advice about roles, responsibilities, and contingencies
- Reduced risk of the document being invalidated
The extra investment makes sense when you’re dealing with durable POAs, medical POAs, or significant assets.
Ways to Make Your Power of Attorney More Affordable
You can manage costs effectively with some smart planning and research.
Shop Around and Compare Prices
Legal fees vary significantly based on location, complexity, and the attorney’s experience. Getting quotes from multiple attorneys or comparing online platforms helps you find the best value. While attorney fees might reach $500, online services may charge just $20 to $100. Make sure you understand what’s included in each price—does it cover consultations, revisions, or additional documents?
Look for Free or Low-Cost Resources
Many state bar associations, legal aid organizations, and public libraries offer free legal templates and guidance for basic POA documents. Websites like LawHelp.org and state-specific legal aid sites provide downloadable forms at no cost. These resources work well for simple situations, though they’re not suitable for complex legal needs.
Get Your POA Notarized Online with BlueNotary
Once your power of attorney document is ready, you’ll need to get it notarized. BlueNotary makes this step incredibly easy and affordable with their online notarization service.
Why choose BlueNotary?
- Convenient: Get your POA notarized from anywhere—no need to drive to a notary office
- Fast: Schedule a session at a time that works for you, often with same-day availability
- Secure: Your documents and personal information are protected with bank-level security
- Affordable: Save money compared to traditional in-person notarization
- Legal: Fully compliant with state regulations for online notarization
Whether you’ve created your POA yourself or worked with an attorney, BlueNotary streamlines the final notarization step. Simply upload your document, verify your identity, and meet with a licensed notary via video call. In just minutes, you’ll have a legally notarized power of attorney ready to use.
Ready to get started? Visit BlueNotary.com to notarize your power of attorney document today.
Power of Attorney Cost Final Thoughts
Creating a power of attorney involves costs that range from under $100 to $500 or more, depending on the type of POA, the method you choose, and the complexity of your situation. Whether you go the DIY route or hire a professional, take time to weigh the pros and cons carefully. With thoughtful planning, comparison shopping, and attention to your state’s requirements, you can find a solution that’s both affordable and legally sound. The decisions you make now can provide peace of mind and financial security for your future.
Frequently Asked Questions
What is a Power of Attorney (POA)?
A POA is a legal document that authorizes someone (your agent) to make decisions on your behalf. These decisions usually involve financial, legal, or healthcare matters, especially when you’re unable to act for yourself.
What are the main types of Power of Attorney?
The most common types are General, Durable, Healthcare, Limited (or Special), and Springing Power of Attorney. Each serves a specific purpose—from broad financial management to healthcare decisions to limited, one-time tasks—based on what the principal needs.
How much does it cost to create a Power of Attorney?
Costs vary depending on the type and how you create it. Attorney fees typically range from $150 to $500, while online services cost $20 to $100. You’ll also need to budget for notary fees ($10 to $50) and possibly filing fees ($10 to $75).
Can I create a Power of Attorney online?
Yes, many online platforms provide templates and tools for creating a POA. These services usually cost $20 to $100, but they may not address all legal complexities or state-specific requirements, especially for complicated situations.
When should I hire an attorney for a Power of Attorney?
Consider hiring an attorney if your situation is complex, involves significant assets, or requires customization. An attorney ensures legal accuracy, compliance with state laws, and personalized guidance, though it costs more than the DIY approach.
What’s the difference between General and Durable Power of Attorney?
A General POA covers a wide range of matters but ends if you become incapacitated. A Durable POA remains in effect even if you lose capacity, making it better for long-term planning.
How can I save money when creating a Power of Attorney?
Get quotes from multiple attorneys, compare online platforms, or use free templates from legal aid organizations or state bar associations. These cost-saving options work well for simple situations but may not be sufficient for complex needs.
What additional costs should I expect?
Beyond the document preparation, you’ll likely pay notary fees ($10 to $50 per signature) and possibly filing or recording fees ($10 to $75). Optional costs include document storage services or expedited processing.
Is a Power of Attorney valid in all states?
While POAs are recognized everywhere, each state has specific requirements regarding format, notarization, witnesses, and filing. Working with an attorney can help ensure your document meets your state’s standards.
What happens if I don’t create a Power of Attorney?
If you don’t have a POA and become incapacitated, a court may need to appoint a guardian or conservator to handle your affairs. This process is expensive, time-consuming, and may result in decisions that don’t align with your wishes. Proper planning helps you avoid this.
