What Is Power of Attorney (POA)?

A Power of Attorney grants an agent the authority to make decisions on the principal's behalf. The most common types are: General POA (broad authority over financial and legal matters, terminates if the principal becomes incapacitated), Durable POA (survives incapacitation — most commonly used for estate planning), Limited or Special POA (restricted to specific transactions, like selling a property), and Healthcare POA or Medical POA (authorizes medical decisions if the principal is unable to make them). A Springing POA only takes effect upon a specified trigger, such as incapacitation. POAs must be signed, witnessed, and notarized according to the laws of the relevant state or jurisdiction. Without a Durable POA, family members typically cannot make financial or medical decisions for an incapacitated person without court-appointed guardianship.

A Power of Attorney is one of the most important estate planning documents you can have — yet many people lack one until a medical emergency makes it urgent. An estate planning attorney can help you draft the right type of POA for your situation and ensure it is legally valid in your state.