Power of Attorney
A power of attorney (POA) is an important document that is part of an estate plan that helps ensure your wishes are met when you are unable to make them on your own. A well-written POA allows you to maintain control of your own affairs even when mentally incapacitated by designating someone to carry out certain financial decisions on your behalf.
What is a Power of Attorney?
A power of attorney is a legal document that gives an agent, also known as an attorney-in-fact, the authority to handle legal or financial matters on the principal's behalf. The principal is the individual granting authority in a POA. In a POA, you can dictate the scope of authority, when the powers will take effect, and any conditions that would terminate them. You can also authorize more than one agent or name successor agents to take over the role if necessary. Without a POA in place, courts may assign someone to make financial and property decisions for you.
While state laws and terms vary, the following are common features of a POA.
- General power of attorney: Grants broad financial and legal authority, such as controlling bank accounts, paying bills, and buying and selling real estate. Limited POAs often grant less power.
- Durable power of attorney: Authorizes agents to continue even if you become incapacitated. A durable POA is most commonly chosen for estate planning.
- Springing power of attorney: Takes effect under predetermined conditions, such as incapacitation. Without this springing POA clause, authority typically takes effect immediately after signing the POA.
Similar to a POA, an advance healthcare directive allows you to appoint an agent to make health-care decisions on your behalf. For more information, learn about the difference between a financial power of attorney vs. an advance directive.
FAQs
What are the most common features of power of attorney?
Powers of attorney commonly vary in the following ways.
- General power of attorney: Grants the agent broad authority, as allowed by state law.
- Limited (or specific) power of attorney: Grants the agent authority only in specific matters or events.
- Durable power of attorney: Continues even if the principal becomes incapacitated.
- Springing power of attorney: Begins only when a specified condition is met, such as the principal's incapacity.
Can you revoke a power of attorney?
Yes, you can revoke a power of attorney at any time.
Who should have a power of attorney?
Anyone over age 18 can benefit from a power of attorney. For example, if you're going abroad for an extended period of time, you may wish to authorize someone you trust to make legal or financial decisions on your behalf while you're away. Or, anyone who wants to protect their assets in case of incapacitation can benefit from a POA.
Can you amend a power of attorney?
Yes, you can change your power of attorney or create a new one to match your circumstances at any time. If you need help creating or revising a power of attorney, LegalZoom’s in-network attorneys can help you.
Still have legal questions?
Our network of attorneys can help. Get unlimited 30-minute consultations on new legal topics with our legal services plan.
Start Now