WESOS Ask Jade January 2025 What is a Power of Attorney? (POA)

What is a power of attorney (POA)?

A power of attorney is a legal document that allows someone else to act on your behalf (an Agent). A power of attorney can be helpful to older people and others who want to choose a trusted person to act on their behalf when they cannot. If you don’t create a power of attorney in advance, a friend or family member might have to go to court to have a guardian appointed if you become incapacitated and are no longer able to make decisions for yourself – and that process can be lengthy, expensive, and very public. An important part of lifetime planning is the power of attorney.

A POA is accepted in all states, but the rules and requirements differ from state to state. The powers may be limited to a particular activity, such as closing the sale of your home, or be general. The power may give temporary or permanent authority to act on your behalf. The power may take effect immediately, or only upon the occurrence of a future event, such as the determination that you are unable to act for yourself due to mental or physical disability/incapacity.

Who Should Be Your Agent?

You may wish to choose a family member to act on your behalf. Many people name their spouses or one or more children. In naming more than one person to act as agent at the same time, be alert to the possibility that all may not be available to act when needed, or they may not agree. There are no special qualifications necessary for someone to act as an attorney-in-fact except that the person must not be a minor or otherwise incapacitated. The best choice is someone you trust. Integrity, not financial acumen, is often the most important trait of a potential agent.

Health Care POA

-health related decisions: authorize surgery, end-of-life treatments / life support

Financial / Property POA

-manage business and financial affairs: sign checks, file taxes, access bank accounts, pay bills