A Power of Attorney (POA) is a legal instrument used to delegate authority to another person, known as your Agent or Attorney-in-Fact. While you remain the "boss" as long as you have capacity, this document ensures your affairs can be managed if you are unavailable or unable to make decisions.

Primary Types of Power of Attorney

• Durable POA: Stays in effect even if you become mentally incompetent. As of 2026, most states presume a POA is durable unless stated otherwise.
• Springing POA: Only becomes active after a specific event occurs, usually a medical determination of incapacity.
• Limited/Nondurable POA: Granted for a specific purpose or timeframe, such as handling a single property sale while you are out of the country.

Financial vs. Medical Authority

It is a common misconception that one document covers everything. Legal authority is typically split:

• Financial POA: Covers banking, real estate, taxes, and digital assets (emails, social media, and crypto).
• Healthcare POA: Authorizes someone to make medical decisions, including surgery and hospital care. This is different from a Living Will, which only dictates end-of-life preferences.

Legal Requirements and Safeguards

To create a valid POA, you must sign the document before a notary public. Many states also require two witnesses to prevent fraud. While you can appoint multiple Agents, you must specify if they can act independently or if they must reach a unanimous decision.

Fiduciary Duty

Your Agent is legally bound to act in your best interest. They must keep their money separate from yours and maintain accurate records of every transaction. If you suspect an Agent is misusing their power, you can revoke the POA in writing at any time, provided you still have the mental capacity to do so.