Power of attorney, explained simply
A power of attorney lets someone you trust act for you. A financial power of attorney covers money and property; a health care power of attorney covers medical decisions. Sign a “durable” one while the person can still decide; waiting too long can mean a costly court guardianship. Choose an honest agent and a backup, use your state’s form, notarize it if required, and give copies to the agent, bank and doctors. It ends at death.
Your checklist
- Know financial vs health care POA
- Sign while the person can decide
- Choose a trusted agent and a backup
- Use your state’s form; notarize
- Share copies with the bank and doctors
- Know it ends at death
Rather read it? Here’s the whole thing.
What it is
A power of attorney (POA) is a legal document that lets someone you choose, the agent, act for you.
Two main kinds
- Financial POA: paying bills, banking, taxes, property.
- Health care POA (also called a health care proxy): medical decisions if you can’t make them. Often paired with a living will about end-of-life wishes.
Durable and timing
A durable POA keeps working if you later can’t make decisions. It must be signed while you can still understand it. If no POA exists and someone loses capacity, family may need a court guardianship or conservatorship, which is slower and more expensive.
Choosing an agent
Pick someone honest and organized, ask them first, and name a backup. Agents must act in your best interest, keep your money separate from theirs, and keep records.
Signing
Use your state’s form or a lawyer. Many states require notarization; health care forms often need witnesses.
After signing
Give copies to your agent, bank and doctors. Some banks review POAs or prefer their own forms, so ask early.
Good to know
You can cancel it while you have capacity. It ends at death, when the executor takes over. Suspected abuse can be reported to Adult Protective Services.
Official sources, and where to look
- CFPB: managing someone else’s moneyconsumerfinance.gov
- Eldercare Locatoreldercare.acl.gov
- American Bar Association: find legal helpamericanbar.org
[your state] statutory power of attorney form[your state] health care proxy form
Common questions
Can I get power of attorney for a parent with dementia?
Only if they still have enough capacity to understand and sign. If not, you may need a court guardianship. Talk to an elder law attorney. More ›
Does a power of attorney let the agent do anything?
Only what the document allows, and always in the person’s best interest. Some powers, like making gifts, must be granted specifically. More ›
What is the difference between a durable and a regular power of attorney?
A durable POA keeps working if the person can no longer make decisions. A non-durable one ends if they lose capacity, which is when it’s often needed most. More ›
Does a power of attorney need to be notarized?
Many states require notarization for financial powers of attorney, and witnesses for health care ones. Follow your state’s rules. More ›
What is guardianship?
A court process that appoints someone to make decisions for a person who can’t. It’s usually slower and costlier than a power of attorney signed in advance. More ›
Can a bank refuse a power of attorney?
Sometimes banks ask to review it or use their own form. Some states limit refusals. Share it early and ask what they need. More ›
Talk to an elder law or estate lawyer
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Not yet reviewed by an expert. Last checked 2026-10-29. This is general help, not legal, medical or professional advice. Rules are different in every state.