Power of attorney in Texas: the rules, signing, and who to name
The short answer
A Texas financial power of attorney names an agent to handle your money and property. It keeps working if you lose capacity only if it says so in writing. You sign it before a notary, with no witnesses needed. Banks and others must accept a valid durable power of attorney within business-day deadlines or explain in writing why not.
A financial power of attorney is the paper that lets someone you trust pay the electric bill, talk to the bank and keep the house running on the days you can't. In Texas, a few rules catch people out. The biggest one: the document has to say, in words, that it keeps working if you become incapacitated.
This page walks through the Texas rules, the signing and who to name. It is one of our estate planning guides for six large states. Health care decisions are covered on its companion page, the Texas medical power of attorney.
What does a Texas power of attorney do?
A power of attorney names an agent to act for you. You are the principal. A financial power of attorney covers money and property: bank accounts, bills, taxes, the house and the paperwork that comes with them.
Medical decisions are separate. In Texas they go in a medical power of attorney, which is a different document with different signing rules.
Your agent is a fiduciary: legally required to act in your interest and follow what you wrote. That is why the words in the document matter so much. They are your instructions.
Durable only if it says so
This is the Texas rule most worth getting right. A power of attorney here is not durable by default (Estates Code 751.0021). "Durable" means it keeps working if you lose capacity, which is usually when your family needs it most.
To be durable, the document must contain words like one of these:
- "This power of attorney is not affected by subsequent disability or incapacity of the principal."
- "This power of attorney becomes effective on the disability or incapacity of the principal."
Similar words also count, as long as they clearly show you meant it to carry on. Our page on what makes a power of attorney durable explains the idea in more detail.
The second sentence creates what people call a springing power of attorney, one that starts only on incapacity. Unless your document defines it differently, Texas treats you as incapacitated when a physician certifies in writing, after an exam, that you can't manage your financial affairs (Estates Code 751.00201). The page on springing vs immediate powers of attorney covers the trade-offs.
If you signed a Texas power of attorney years ago, look for the durability sentence before you rely on it.
How do I sign one in Texas?
Texas keeps the signing simple (Estates Code 751.0021):
- You must be an adult. You sign it yourself, or another adult signs for you, at your direction and in your conscious presence.
- You acknowledge your signature before a notary, or another officer authorized to take acknowledgments.
- No witnesses are needed.
Texas has a statutory form, called the statutory durable power of attorney (Estates Code 752.051). You don't have to use it. Other forms are allowed, as long as they meet the rules above. The statutory form also has a category for digital assets, such as online accounts.
Here is a short signing checklist:
| Step | Done? |
|---|---|
| Durability sentence is in the document | |
| Agent and at least one backup agent named | |
| Any special powers (gifts, trusts, beneficiaries) written in expressly | |
| Signed and acknowledged before a notary | |
| Copies given to your agent and backup | |
| Original kept somewhere your agent can find it |
What can my agent do, and what needs special words?
Your agent can do what the document grants. But some powers are serious enough that Texas requires you to grant them expressly (Estates Code 751.031). General wording is not enough for these:
| If you want your agent to be able to... | Texas requires |
|---|---|
| Create, amend, revoke or end a living trust | Express grant in the document |
| Make gifts | Express grant in the document |
| Create or change survivorship rights | Express grant in the document |
| Create or change beneficiary designations | Express grant in the document |
| Hand their authority to someone else | Express grant in the document |
The trust power matters if you have, or plan to have, a living trust. Without it, your agent can't move a newly found account into the trust for you.
There is one more protection. An agent who is not your parent, grandparent, spouse, child or grandchild cannot use those special powers to benefit themselves, unless your document says they may. So if you name a close friend, they can't make gifts to themselves just because the gift power is there.
Will the bank accept it?
This is where Texas is unusually strong. Many families have stood at a bank counter while a clerk asked for a different form. Texas law sets deadlines in business days (Estates Code 751.201 to 751.213).
When someone is handed a durable power of attorney, they must:
- Accept it, or within 10 business days ask for an agent's certification or an opinion of counsel (5 business days if they want an English translation).
- Accept it within 7 business days of receiving what they asked for.
- Refuse only on a ground the statute lists, and explain the refusal in writing.
A bank can't demand its own form. It also can't demand that the document be recorded, unless recording is required for the transaction, as with real estate.
If a refusal is wrong, you or your agent can go to court. The court may order acceptance and award costs and attorney's fees. That rule gives your agent real standing at the counter.
Who should I name?
The law cares that your agent is an adult you trust. The practical questions matter more. Is the person organized? Willing? Comfortable with online banking, or close enough to drive to the branch?
| If your first choice is... | Worth thinking about |
|---|---|
| A spouse | A younger backup, since you may face the same illness at the same time |
| A child in another state | Someone nearer as first, with your child as backup |
| A close friend | Whether they want the job, and our page on naming a friend as your agent |
| Two people jointly | Whether one agent with a named backup would move faster |
Whoever you choose, name a second person behind them. Our page on a backup in every role explains why one name is rarely enough.
Here is a typical case, a composite. Carol is 72 and lives in Austin with her beagle, Pepper. Her son lives in Ohio. She names her longtime neighbor, who already has a key and feeds Pepper when Carol travels, as her agent, with her son as backup. When Carol spends three weeks in rehab after a hip replacement, the rent on her storage unit and the water bill are paid on time.
Some people would like a professional standing by, first or behind family. A Kinly membership includes a financial power of attorney written for your state's laws, and Trella Trust Company, a Washington State chartered trust company, can be named first or as backup to the people you choose.
What if I never sign one?
If you lose capacity without a working power of attorney, your family may have to ask a court for a guardianship. Texas law lists a durable power of attorney as one of the alternatives to guardianship (Estates Code chapter 1002). Our page on how to avoid guardianship explains the court process and how to stay out of it.
A power of attorney is for your lifetime. Settling your estate after death is a different job, handled by your executor. The Texas probate and small estates guide picks up from there.
Common questions
Does a power of attorney have to be notarized in Texas?
Yes. A Texas durable power of attorney must be acknowledged before a notary or another officer authorized to take acknowledgments. Witnesses are not required.
Is a Texas power of attorney durable automatically?
No. It is durable only if it contains words showing it is not affected by your later disability or incapacity, or that it starts on your incapacity. Without that wording, it may not keep working when you need it.
Can a bank refuse my Texas power of attorney?
Only on a ground the statute lists, and it must explain the refusal in writing. Otherwise it must accept, or ask for a certification or legal opinion within 10 business days and accept within 7 business days of getting it. A court can order acceptance and award attorney's fees.
Can my agent make gifts or change my beneficiaries?
Only if your document expressly grants that power. The same is true for changing a living trust, survivorship rights or delegating authority. An agent outside your close family can't use those powers to benefit themselves unless the document allows it.
Is there an official Texas power of attorney form?
Yes. Texas has a statutory durable power of attorney form in Estates Code 752.051. Using it is optional, and other forms are valid if they meet the signing rules.
Sources
This page is general information, not legal or financial advice. Laws vary by state.