What Is a Power of Attorney?
A Power of Attorney (POA) is a legal document that grants one person (the 'agent' or 'attorney-in-fact') the authority to act on behalf of another person (the 'principal'). This authority can be broad or limited to specific acts, such as managing finances, selling property, or making business decisions.
Types of Powers of Attorney
General Power of Attorney
Grants broad authority to the agent to handle almost all financial and legal matters. Typically ends if the principal becomes incapacitated.
Durable Power of Attorney
Remains in effect even if the principal becomes mentally incapacitated. Essential for long-term estate planning.
Limited (Special) Power of Attorney
Grants authority for a specific, defined purpose (e.g., signing closing documents for a house) and usually expires once the task is complete.
What Is the Difference Between a Financial and Medical POA?
A Financial Power of Attorney gives someone the right to manage your money, property, and business affairs. A Medical Power of Attorney (or Healthcare Directive) specifically authorizes an agent to make healthcare and medical decisions on your behalf if you cannot communicate those decisions yourself.
Create Your Power of Attorney
Designate your agent and define their powers with a customized POA template.