Indiana Power of Attorney Statute: Agent Duties, Revocation, and Costs

Indiana power of attorney requirements are set out in Title 30, Article 5 of the Indiana Code, and they are shorter than most people expect. A valid financial power of attorney must be in writing, name the agent, grant the agent authority to act for you, and be signed by you (or by someone else at your direction) in the presence of either a notary public or witnesses.¹ You must be at least 18 and of sound mind when you sign. There is no required form and no magic language beyond identifying your agent and spelling out what the agent may do.

The document takes effect the day you sign unless it names a later date or a triggering event such as your incapacity.² If someone else signs for you, the notary must note in the document that the signing was done on your behalf. Vague wording is the most common reason a POA causes trouble later, so be specific about what your agent can and cannot do.

Durable by Default

This is where Indiana law surprises people. In many states you have to add specific “durable” language to keep a POA alive if you lose capacity. Indiana flips that. A power of attorney is not terminated by the principal’s incapacity unless the document explicitly says it should be.³ Every Indiana POA is durable unless you write it otherwise.

If you actually want a non-durable POA that ends when you lose capacity, you need to add language saying so. Non-durable documents fit temporary, narrow situations where you expect to stay capable, like authorizing someone to close on a house while you are traveling. Even then, third parties who rely on a non-durable POA in good faith without knowing you have become incapacitated are protected, and their actions still bind you and your estate.³

General, Limited, and Springing Powers

A general power of attorney grants broad authority over your financial and legal affairs: banking, investments, real estate, taxes, running a business. It suits situations like a long illness or extended time abroad, where you need someone with comprehensive coverage.

A limited power of attorney restricts the agent to specific tasks or categories. You might authorize one property sale, one bank account, or one business transaction. Anything outside the stated scope is off-limits. Limited POAs show up often in real estate closings and business deals.

A springing power of attorney sits dormant until a specific event activates it, most often your incapacity. If you named someone in the document to determine your incapacity, that person makes the call. If you did not, or the person you chose cannot or will not decide, then a physician, licensed psychologist, or judge must provide a written determination that you are incapacitated before the POA takes effect.² Naming a specific person to make that call keeps the process out of court.

Powers That Must Be Spelled Out

Some authority does not come along for the ride even in a general POA. Gift transactions are governed by their own statutory section. Your agent may make gifts to organizations you have previously donated to and may give to your spouse, children, and descendants for purposes the agent considers in your best interest, including tax minimization. But the agent, or anyone the agent is legally obligated to support, cannot receive gifts exceeding the federal annual gift tax exclusion in a single year.⁴ If you want your agent to have gift-giving authority, build it into the document.

Real Estate Requires Recording

For most transactions your agent can act under the POA without filing it anywhere. Real estate is the exception. If your agent will sign a deed, mortgage, or any other document that must be recorded with the county, the power of attorney itself must be recorded with the county recorder first.⁵ The recorder will reject any document your agent files if the underlying POA is not already on record. Recording costs $6 for the first page and $2 for each additional page at standard paper size.

Naming Co-Agents and Successors

You can name more than one agent. By default in Indiana, each co-agent may act independently, so both do not need to sign off on every transaction. If you want them to act jointly and agree before doing anything, say so in the document. If one co-agent stops serving, the remaining co-agent continues without needing a replacement.⁶

A successor agent steps in when all original agents can no longer serve. Indiana recognizes six events that end an agent’s service: death, resignation, a court finding of incapacity, being unreachable after reasonable effort, divorce from the principal if the agent was the principal’s spouse, or a physician’s written certification that the agent can no longer handle the job.⁷ A successor receives all the same powers as the original agent, and once the successor starts acting they continue even if the original agent later recovers the ability to serve.

What Your Agent Owes You

An agent under an Indiana POA acts in a fiduciary capacity, which means every decision must serve your interests, not the agent’s.⁸ The agent must avoid conflicts of interest and cannot use your assets for personal benefit unless the POA explicitly authorizes it. This applies to every act, from a small withdrawal to a large property sale.

Your agent must keep complete records of every transaction for six years, or until the records are delivered to a successor agent, whichever comes first. The agent does not have to volunteer an accounting but must provide one within 60 days when ordered by a court or requested by you, a court-appointed guardian, your child, or someone who jointly owns an account with you. After your death, the personal representative of your estate or any heir or beneficiary can request an accounting within nine months of your death.⁹

Unless the POA says otherwise, your agent is entitled to reimbursement for reasonable expenses advanced on your behalf and may collect a reasonable fee for services, but must submit a written request for the fee within 12 months after performing the service.¹⁰ Many family members serve for free, but the right to compensation exists if the document is silent. If you want your agent to serve without pay, say so.

If a Bank or Institution Refuses to Honor It

Banks, brokerages, and other institutions sometimes push back against an agent even when the POA is valid. Indiana treats this seriously. A person or institution that refuses to accept an agent’s authority within three business days of receiving the power of attorney is liable for three times the actual damages, the agent’s attorney’s fees, and prejudgment interest running from the date of refusal.¹¹

Refusal is justified only in limited circumstances: if the institution has actual notice the POA has been revoked, if the POA has expired by its own terms, if it knows the principal has died, or if it reasonably believes the POA is legally invalid or does not grant authority for the transaction requested. In those last two cases, the institution must provide a written explanation within 10 business days of the refusal.¹¹ If you are an agent facing pushback, pointing the institution to this statute often resolves things without litigation.

Revoking or Ending a Power of Attorney

You can revoke your power of attorney at any time, as long as you have mental capacity. The revocation must be in writing, identify the POA being revoked, and be signed by you. It does not take effect until your agent actually knows about it.¹² Signing a revocation and leaving it in a drawer accomplishes nothing. Deliver it to your agent and to any institutions that have been dealing with the agent on your behalf.

A POA also terminates automatically on your death.¹² Actions the agent takes before learning of your death remain valid; after that, all authority ends and your estate’s personal representative takes over.

Divorce catches people off guard. If your agent is your spouse and you divorce, your spouse automatically ceases to serve. The POA itself survives. If you named a successor agent, that person steps in. If you did not, the POA effectively has no one to exercise it and you will need to create a new one.⁷ Updating a POA belongs on the same divorce to-do list as changing beneficiaries and updating your will.

Healthcare Decisions Are Separate

A financial power of attorney does not cover medical decisions. If you want someone making healthcare choices for you, you need an advance directive under Indiana Code Title 16, Article 36, Chapter 7, which has its own execution rules: signature in the presence of two adult witnesses or a notary, and at least one witness cannot be your spouse or a relative.¹³ A healthcare representative appointment becomes effective when your attending physician determines you cannot consent to your own care.

What It Costs

Indiana does not charge a filing fee for a POA that will not be used in real estate. The direct costs are notarization and, if needed, recording. An Indiana notary may charge up to $10 per signature.¹⁴ Recording, when required, is $6 for the first page and $2 for each additional page at standard paper size. Attorney fees for drafting vary, but a straightforward financial POA is among the less expensive estate planning documents to prepare.

1
Indiana General Assembly. Indiana Code 30-5-4-1 – Creation of a Power of Attorney
2
Indiana General Assembly. Indiana Code 30-5-4-2 – Time Power Becomes Effective; Incapacity of the Principal
3
Indiana General Assembly. Indiana Code 30-5-10-3 – Incapacity of Principal
4
Indiana General Assembly. Indiana Code 30-5-5-9 – Gift Transactions
5
Indiana General Assembly. Indiana Code 30-5-3-3 – Recording Power of Attorney
6
Indiana General Assembly. Indiana Code 30-5-4-3 – More Than One Attorney in Fact; Independent Actions; Failure or Cessation of Service
7
Indiana General Assembly. Indiana Code 30-5-4-4 – Failure or Cessation of Service; Circumstances; Successor Attorney in Fact; Powers
8
Indiana General Assembly. Indiana Code 30-5-6-3 – Fiduciary Capacity; Exercise of All Powers
9
Indiana General Assembly. Indiana Code 30-5-6-4 – Records of Transactions; Accounting
10
Indiana General Assembly. Indiana Code 30-5-4-5 – Reimbursement of Expenses; Fee for Services
11
Indiana General Assembly. Indiana Code 30-5-9-9 – Persons Refusing to Accept Authority of Attorney in Fact
12
Justia. Indiana Code 30-5-10 – Termination of the Power of Attorney
13
Indiana General Assembly. Indiana Code 16-36-7-28 – Advance Directive; Signature; Witnesses; Acknowledgement; Counterparts; Telephonic Interaction; Validity
14
Indiana General Assembly. Indiana Code 33-42-14-1 – Notary Public Fees