What Is a Power of Attorney? When Do I Need One?
Written by Law on Call Staff | Last Updated September 4, 2025
A power of attorney authorizes a person to manage aspects of another’s affairs. The granted powers can be broad, specific, or time-sensitive as desired.
Not sure if a power of attorney makes sense for you or your loved ones? We’ll walk you through the ins and outs.
Main Takeaways
- A power of attorney allows a specified person to act on behalf of another.
- The powers can be minimal, encompassing, and time- or event-specific.
- POAs are often used in estate planning, but can also useful for folks living or traveling abroad.
Power of Attorney Definition
A power of attorney (POA) is the legal vehicle through which one person may be granted authority to act for another in financial, legal, or medical matters. The scope may be far-reaching or specific, and the power granted may be indefinite or temporary.
In a power of attorney document, the person granting power is referred to as the “principal.” The person given decision-making power is the “agent” or “attorney-in-fact.” (We’ll call them the “agent.”)
Who Needs a Power of Attorney?
A power of attorney is useful when you want to grant another person the ability to make decisions on your behalf. Some folks who may benefit from POAs include:
- International travelers
- Expats
- Deployed military
But the most common use of a power of attorney is in estate planning—often supplementing a will or a trust—to prepare for medical issues that may render a person unable to make decisions themselves.
It’s important to plan ahead when creating a power of attorney. These documents can’t be created for people who are already incapacitated.
Don’t leave anything up to chance.
Power of Attorney Types
There are five broad types of power of attorney: general, limited, non-durable, durable, and springing.
Additionally, some of these powers of attorney can be combined. The most common example of this is General Durable Power of Attorney, which grants an agent wide-reaching authority until the death of the principal.
What is a general power of attorney?
A general power of attorney allows the agent to act in a wide range of legal, medical, financial, and business matters.
Agent authority may include:
- Buying and selling assets, including real estate
- Opening and closing financial accounts
- Paying bills
- Filing taxes
- Entering legal contracts
- Initiating a lawsuit on the principal’s behalf
Prohibited POA authority varies by state. In general, an agent may not:
- Write or make changes to a principal’s will
- Make post-mortem decisions regarding the principal’s estate
- Transfer power of attorney to another party
- Vote for the principal in a political election
- Break their fiduciary responsibility to the principal
What is a limited power of attorney?
A limited power of attorney (aka special power of attorney) is specific to a defined event or task. It ends when the event finishes or the task is complete.
Common types of limited powers of attorney include:
- Medical power of attorney
- Financial power of attorney
A limited power of attorney is often used in business. You might grant limited power of attorney to a trusted colleague to purchase real estate on your behalf, or to make a certain business decision while you are away.
What is a durable power of attorney?
A durable power of attorney gives the agent authority to act on behalf of the principal even if the principal becomes mentally incompetent. Unless canceled, a durable power of attorney remains valid until the death of the principal.
If a person becomes incapacitated and doesn’t have a durable power of attorney, their family may face court proceedings before their finances can be sorted.
What is a non-durable power of attorney?
A non-durable power of attorney does not stay in place if the principal becomes incapacitated. Should they become incapacitated, a non-durable power of attorney will be void.
What is a springing power of attorney?
A springing power of attorney becomes effective only once a specific condition is met. It’s typically used when a principal wants an agent to have authority over their affairs once they’ve become incompetent, but not until then.
This can be complicated by the reality that determining legal incompetency is not necessarily straightforward.
The Uniform Power of Attorney Act
Powers of attorney are regulated by state law. The Uniform Power of Attorney Act eliminates variations in POA regulations for states that adopt it.
To date, 29 states have adopted the Uniform Power of Attorney Act: Alabama, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Idaho, Iowa, Kentucky, Maine, Maryland, Montana, Michigan, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
These 29 states offer reciprocity, so that a power of attorney drafted and signed in one state will hold up in another.
Frequently Asked Questions
Almost every adult has due cause to consider a power of attorney for estate planning purposes. A durable power of attorney can be especially useful, as it allows the agent to make decisions once the principal is incapacitated. This might include changes to how your money is managed or what medical choices are made for you. Putting a trusted person in charge of those decisions before something negative happens to your health can streamline a stressful process.
If you become legally incapacitated without a durable power of attorney in place, your family may be subjected to lengthy legal proceedings in order to conduct financial actions in your name, and even to make medical decisions for you.
The benefit of having a power of attorney is knowing that if you are unable to make important decisions, you can grant that power to someone who can carry out decisions for you.
Absolutely. A principal can revoke or amend a power of attorney at any time. Once amended, it is a good idea to notify any institution that has the power of attorney on file.
Agents for a power of attorney need to bring either a certified copy or a photocopy of the document when interacting with other entities such as banks or health care providers. Some institutions will not accept photocopies but all will accept certified copies. When signing documents as power of attorney, agents will use their name and then indicate that they’re signing as POA.
The principal granting power of attorney can revoke that power at any time, as long as they’re mentally competent to do so. Revocation of a power of attorney should be done in writing. It’s also a good idea to notify financial institutions and other businesses that the agent no longer has power to act in the principal’s name.
The question of who can override a power of attorney for a loved one is more difficult. If someone believes that another person is abusing their position as power of attorney, legal action may be needed to have them removed.