What Is a Power of Attorney?

A power of attorney (POA) is a legal document that gives someone you trust (your "agent" or "attorney-in-fact") the authority to act on your behalf.

Types of power of attorney:

General POA — Grants broad authority to handle all financial and legal matters. Ends if you become incapacitated.

Durable POA — Same as general but remains effective if you become incapacitated. Essential for estate planning.

Limited (special) POA — Grants authority for a specific transaction or time period (e.g., selling a property while you are abroad).

Springing POA — Only takes effect upon a specified event, such as incapacitation.

Medical/Healthcare POA — Authorizes someone to make medical decisions if you cannot.

What your agent can do (if authorized):

Manage bank accounts and investments

Pay bills and manage property

File taxes

Make healthcare decisions (medical POA)

Conduct business transactions

Handle government benefits

Important safeguards:

Choose someone you trust completely — your agent has a fiduciary duty to act in your best interests.

Be specific about the powers granted.

Consider naming a successor agent.

The POA can be revoked at any time while you are competent.

When a POA ends:

You revoke it.

You die (a POA does not survive death — the executor takes over).

You become incapacitated (unless it is durable).

The agent dies, becomes incapacitated, or resigns.

A court invalidates it.

This is legal information, not legal advice.