What is a Power of Attorney?

But, generally speaking, a Power of Attorney is a document you give to someone else that allows them to act for you in certain situations. The fact is that almost everyone should have given someone at least one type of power of attorney.

At a minimum, if you were to become disabled, you would likely need someone to act on your behalf to pay your bills; collect your income; sell your property; authorize medical treatment and do all the things that you would normally do for yourself. Most people give a power of attorney to their spouse.

I say almost everyone should have a power of attorney because some people (very few) are better off simply relying on the court system to handle their affairs if they become incapacitated. In that case, a family member or friend could petition a probate court to grant them guardianship and/or conservatorship over the incapacitated person and his or her property. The court could appoint the petitioner as guardian or conservator, but would maintain oversight over their actions and probably require periodic reporting to the court.

Of course guardianship or conservatorship proceedings are much more time-consuming and expensive compared to the alternative of simply giving someone a power of attorney to handle these matters. But you might prefer to have it handled that way -- especially if you don't have someone you can completely trust to manage your affairs.

If you give someone a power of attorney, you are considered to be the "principal" of the power of attorney. The person you give the power to is considered to be your "agent" or "attorney-in-fact." This is where the term "attorney" comes from in "power of attorney." The person you give the power to need not be an actual licensed attorney or lawyer (usually is not); however he or she is empowered to act on your behalf as your attorney in fact and has certain fiduciary duties to you.

Just because you give someone a power of attorney does not mean it will ever be used. It's just there in case it’s needed. And, you can revoke it at any time.

We often receive questions about powers of attorney. So, here’s a short Power of Attorney FAQ List:

• How do I decide who to give the power of attorney to or what’s the best way to pick my agent?

First, and foremost, you need to be able to trust whomever you select. That person will likely have broad discretion to make significant decisions about your affairs. So, preferably, you want someone who knows you well and would have a good idea what you would want should the time come when they have to make decisions for you.

In most cases, the power of attorney will include the authority to manage your financial affairs; sell your assets; pay your debts, etc. So, preferably, in that case, your agent should be knowledgeable and comfortable with financial matters.




• How do I create a power of attorney?

Every state has different rules regarding the specifics of what is required for a valid power of attorney in the state in question. The differences are usually more about format, notary, and witness requirements; rather than substantive differences. There are many books and software programs that can help you learn about and create a power of attorney. Click here to see some of those.

You also can use an on-line service like Legal Zoom to easily and quickly create high quality powers of attorney.

Here are links to articles that generally discuss power of attorney preparation in most states:

State by State Power of Attorney Preparation Rules.




• Where can I find free sample power of attorney forms?

Generally speaking, we don’t recommend using random free blank power of attorney forms you might pick up anywhere. You need to be sure you can trust that the source providing the form is legitimate and knowledgeable about powers of attorney. There is absolutely no substitute for discussing your individual circumstances with an attorney and having the attorney draft your power of attorney. You can find a qualified estate planning attorney, who can draft your powers of attorney (as well as your will and/or living trust) at choosing an estate planning attorney.


However, if you don’t want to speak to an attorney, and only need a simple power of attorney, you can find good sources of free POA forms from a community organization or non-profit agency. Your local bar association might have a pro-bono program where lawyers offer their services to draft powers of attorney for free. Your state may provide statutory powers of attorney in the state legal code. One web resource we like that offers free on-line sample printable powers of attorney forms (that you can download) is Free Power of Attorney Form.




• What are the different types of powers of attorney?

There are many, many different types of powers of attorney. In fact, the different types are really only limited by the drafter’s imagination since a power of attorney can be crafted to allow or limit a virtually unlimited range of actions. However, there are a few POA types or categories that we should briefly discuss.

Powers of attorney can be defined by two broad categories: General POA’s and Special POA’s. General powers of attorney are much more vague and broad than special powers of attorney. If you give someone a general power of attorney, you give them the power to do almost anything that you yourself could do. Obviously, you should be very, very careful about doing that. Many people have been harmed by needlessly giving a general power of attorney to someone they later had a “falling out” with. Special powers of attorney are different because they are limited to the special or specific power you want to grant. Normally, it is safer to give Special POA’s rather than General POA’s. Some types of special POA’s include a:

Financial Power of Attorney

Medical (or Health Care) Power of Attorney

Child Care Power of Attorney

Real Estate Power Attorney

Vehicle Power of Attorney; etc.

It is also important, to consider whether you want your power of attorney to be "durable." A durable power of attorney will continue to be valid if you become mentally incompetent because of an accident or illness. In fact, often a durable power of attorney will state that it will go into effect only after a doctor certifies that you are mentally incapacitated.

We have many pages on this site with information about various power of attorney issues. Those pages include:

• Alabama Power of Attorney
• Alaska Power of Attorney
• Arizona Power of Attorney
• Arkansas Power of Attorney
• California Power of Attorney
• Colorado Power of Attorney
• Connecticut Power of Attorney
• Delaware Power of Attorney
• Florida Power of Attorney
• Georgia Power of Attorney
• Hawaii Power of Attorney
• Idaho Power of Attorney
• Illinois Power of Attorney
• Indiana Power of Attorney
• Iowa Power of Attorney
• Kansas Power of Attorney
• Kentucky Power of Attorney
• Louisiana Power of Attorney
• Maine Power of Attorney
• Maryland Power of Attorney
• Massachusetts Power of Attorney
• Michigan Power of Attorney
• Minnesota Power of Attorney
• Mississippi Power of Attorney
• Missouri Power of Attorney
• Montana Power of Attorney
• Nebraska Power of Attorney
• Nevada Power of Attorney
• New Hampshire Power of Attorney
• New Jersey Power of Attorney
• New Mexico Power of Attorney
• New York Power of Attorney
• North Carolina Power of Attorney
• North Dakota Power of Attorney
• Ohio Power of Attorney
• Oklahoma Power of Attorney
• Oregon Power of Attorney
• Pennsylvania Power of Attorney
• Rhode Island Power of Attorney
• South Carolina Power of Attorney
• South Dakota Power of Attorney
• Tennessee Power of Attorney
• Texas Power of Attorney
• Utah Power of Attorney
• Vermont Power of Attorney
• Virginia Power of Attorney
• Washington Power of Attorney
• West Virginia Power of Attorney
• Wisconsin Power of Attorney
• Wyoming Power of Attorney

• Canada Power of Attorney
• Health Care Power of Attorney
• Joint Power of Attorney
• A Living Will in Estate Planning
• Military Power of Attorney
• Revoking a Power of Attorney

Take your time browsing the many resources in the Power of Attorney Books and Software Store above. After you're done there, check out the more general Estate Planning Books Store.

Here’s an article about Durable Power Of Attorney Madicaid Considerations

Here’s our Tips For Discussing Wills and Powers Of Attorney with your parents

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