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My sister-in-law lives in Florida and is Power of Attorney for my mother-in-law who lives in New Hampshire.

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Yes. Unless there are state laws or regulations prohibitting out of sate POAs, there is nothing to prevent this. I am not familiar with NH law, but my guess is that there is nothing preventing this. It would be just like you transacting business on your own behalf from out of state.
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Thank you very much
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