Power of Attorney (POA) FAQ

What is a Power of Attorney (POA)?

A Power of Attorney is the most common way to address the issue of managing finances when you are unable to do so, like when you become mentally incompetent, for example.

What are the different types of Powers of Attorney?

There are several types of Powers of Attorney documents, including General Power of Attorney, Special Power of Attorney, and Health Care Power of Attorney.  

• A General Power of Attorney gives very broad powers to your appointed agent to manage your financial and personal affairs.  Powers include the ability to operate a business, make gifts, make living trust transfers, grant a disclaimer power, and handle a personal residence.
• A Special Power of Attorney allows you to specify more limited powers to you agent, like the ability to manage your checking account or the ability to access your safety deposit box.
• A Health Care Power of Attorney allows you to legally authorize another person to make decisions about your medical care when you are not able to.

What if my agent doesn’t follow my wishes?

A number of agent provisions are included in a Power of Attorney. These provisions clarify issues related to how the agent handles your affairs including: misconduct, compensation, and accountings of the agent’s actions. 

Can I change my agent at a later time?

You can revoke a signed power of attorney at any time, regardless of the reason. For example, you may change your mind about the agent you selected. The revocation should be made in writing using a Revocation of Power of Attorney document, and you must provide notice to the agent under the Power of Attorney that you are revoking.

What is a Durable Power of Attorney?

Some states allow you to make your Power of Attorney document “durable.” A “durable” power of attorney is effective even if you become mentally incompetent.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.