Key Takeaways
- A power of attorney (POA) is a document in which you (the principal) give someone you trust (the agent) authority to act for you.
- The main types are financial and health care (medical), and either can be durable (lasting through incapacity) or springing (starting only at incapacity).
- You must have mental capacity when you sign; if you wait until you can’t, your family may need a court guardianship instead.
- Signing rules vary by state: financial POAs usually need a notary, and health care POAs often need witnesses, a notary or both.
- You can revoke a POA at any time while you’re competent, and every POA ends at death.
What is a power of attorney?
A power of attorney is a legal document that lets you choose someone to make decisions or take actions on your behalf. You’re the principal; the person you choose is your agent (sometimes called an attorney-in-fact). Despite the name, your agent doesn’t need to be a lawyer.
Agents are fiduciaries: they must act in your best interests, keep your money separate from theirs, keep records and follow your instructions.
Types of power of attorney
| Type | What it covers | When it’s effective | Common use |
|---|---|---|---|
| General financial POA | Broad authority over money and property | When signed; ends at incapacity unless durable | Managing affairs while traveling |
| Durable financial POA | Same, and continues if you’re incapacitated | When signed, through incapacity | Core estate planning document |
| Springing POA | Financial authority that starts at incapacity | When incapacity is confirmed | People who want no authority granted until needed |
| Limited (special) POA | One specific task or transaction | For that task or period | Selling a car or closing on a house |
| Health care (medical) POA | Medical decisions | When you can’t make your own | Core estate planning document |
Learn more in durable vs. springing power of attorney and our medical power of attorney guide.
How to get a power of attorney
- Decide what you need. Most adults want a durable financial POA and a health care POA.
- Choose your agent and an alternate. Pick someone trustworthy, organized and willing. You can name different people for financial and medical decisions.
- Decide on the scope. You can grant broad powers or limit them. Some powers, such as making gifts or changing beneficiaries, often must be granted specifically.
- Use a form that meets your state’s rules. Many states have statutory forms.
- Sign correctly. Follow your state’s requirements for notarization and witnesses. Some states also require the agent to sign an acknowledgment.
- Distribute copies. Give copies to your agent, your bank and your doctors. If the POA will be used for real estate, it may need to be recorded with the county.
Signing while you have capacity
You can only create a POA while you understand what you’re signing. If someone develops dementia or has a sudden injury without a POA in place, their family may need to ask a court for a guardianship or conservatorship: a public, slower and more expensive process that also puts the court in charge of ongoing oversight. That’s why a POA is worth signing early, including for young adults and aging parents.
When a power of attorney ends
- When you revoke it; see how to revoke a power of attorney
- At your death, when your executor takes over
- When a stated end date or purpose is reached
- If your agent can’t serve and no alternate is named
- In many states, if your agent is your spouse and you divorce
Frequently asked questions
Financial powers of attorney almost always need to be notarized, and banks expect it. Health care powers of attorney typically require witnesses, a notary or both, depending on your state.
No. Every power of attorney ends at death. After that, the executor named in your will handles your estate.
Yes. You can name co-agents or name a primary agent and alternates. Co-agents who must act together can slow things down, so many people name one agent at a time.
No. Agents must act in your best interests and within the powers you granted. Misusing a principal’s money can lead to civil liability and criminal charges.
Not necessarily. Many people complete statutory or online forms themselves. Consider legal help if your finances are complex or family conflict is likely.
Guides in this hub
- Medical Power of Attorney: What It Is and How It WorksA medical power of attorney names someone to make health care decisions if you can't. Learn what your agent can do, when it takes effect and how to choose the right person.
- Durable vs. Springing Power of Attorney: Which Should You Choose?A durable POA lasts through incapacity; a springing POA starts only at incapacity; a regular POA ends at incapacity. Compare the three and learn which most people choose.
- Power of Attorney for an Elderly Parent: A Step-by-Step GuideHow to get power of attorney for an aging parent: the documents to sign, capacity concerns, bank and Social Security quirks, and what to do if it's too late.
- How to Revoke a Power of AttorneyYou can revoke a power of attorney anytime while you're competent. Learn the steps: written revocation, notifying your agent and third parties, and replacing the document.
Don’t leave your family guessing
Put your health care wishes in writing with a living will, HIPAA release and medical authorization. The No Brainer Box adds a last will, a revocable trust and health care and financial powers of attorney.
- Answer a few simple questions online
- Download your completed, ready-to-sign forms
- Sign them and keep copies in your account
This guide is general educational information written by the No Brainer Forms Team. It is not legal advice, and No Brainer Forms is not a law firm. Laws and signing requirements vary by state; for advice about your situation, talk to a licensed attorney in your state.