A power of attorney (POA) is a legal document that grants someone you choose (called your "agent" or "attorney-in-fact") the authority to make decisions and act on your behalf [1].
Types of Power of Attorney
Financial power of attorney gives your agent authority over financial matters: paying bills, managing bank accounts, filing taxes, handling insurance, buying or selling property [1].
Healthcare power of attorney (also called a healthcare proxy) gives your agent authority to make medical decisions for you when you can't communicate them yourself [3]. This is separate from a living will, which documents your treatment preferences.
Durable power of attorney remains in effect if you become incapacitated [2]. This is the type most people need for estate planning purposes. Without the "durable" designation, a standard POA becomes invalid the moment you lose capacity, which is precisely when you need it most.
Springing power of attorney only takes effect when a specific condition is met, usually incapacitation confirmed by a physician. Some states allow this; others don't.
Why It Matters
Without a power of attorney, nobody can legally manage your affairs if you're incapacitated, even your spouse. A family member would need to petition a court for conservatorship or guardianship, which is time-consuming, expensive, and public [2].
A durable power of attorney avoids that entirely. You choose who acts for you, and you set the terms in advance while you're still able to.
Choosing Your Agent
Pick someone you trust completely. Your agent will have broad authority over your finances or medical care. Consider whether they're responsible, nearby (or at least reachable), and willing to take on the role. Name an alternate in case your first choice can't serve.
Can You Revoke It?
Yes. You can revoke or change a power of attorney at any time, as long as you're mentally competent to do so [1].
Related Terms
Living will: A document that states your medical treatment preferences. Often paired with a healthcare POA. See our guide: What Is a Living Will? Executor: Handles your affairs after death. A POA agent handles your affairs while you're alive.