Written by NotALawyer Legal AI · Reviewed by External Legal AI · Published April 7, 2026 · Last reviewed June 26, 2026
A power of attorney (POA) names someone you trust to make decisions for you — financial, medical, or both. Set one up while you're healthy. Without a POA, if you become incapacitated, your family may have to go through an expensive court process just to act on your behalf.
A financial POA lets your agent pay bills, manage investments, sell property, and file taxes. It can take effect right away or only after you become incapacitated.
A healthcare POA (also called a healthcare proxy) lets your agent make medical decisions when you can't communicate — treatment options, choice of facility, and end-of-life care.
A healthcare proxy names a decision-maker who can apply your wishes to situations no document anticipated; a living will spells out the wishes themselves, like declining resuscitation. Many people have both. With neither, most states fall back on a default surrogate order — typically spouse, then adult children, then parents — which may not be who you'd choose.
Depending on your state, a POA can end if you become mentally incapacitated — the moment you need it most. A "durable" POA states clearly that it stays in effect through incapacity.
You don't have to hand over unlimited power. A POA can be restricted to specific accounts, transactions, or time periods. While you're mentally competent, you can revoke it at any time.
Your agent owes you a fiduciary duty to act in your interest, but abuse does happen. Name someone you trust completely, and consider a backup agent in case your first choice can't or won't serve.
More on this topic: the Wills & Estates hub
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