What is a Power of Attorney?

October 9, 2024

A power of attorney is a legal document that allows you to appoint someone to make decisions on your behalf in the event that you are unable to do so yourself. This can be especially important in situations where you may become incapacitated due to illness or injury.
In this blog, we will explore the ins and outs of powers of attorney, including what they are, how they work, and why they are important. We will also provide tips and advice on how to create a power of attorney that is tailored to your specific needs and circumstances.

Whether you are planning for the future or facing a sudden crisis, having a power of attorney in place can provide peace of mind and ensure that your wishes are carried out effectively. Join us as we delve into this important legal tool and learn how it can benefit you and your loved ones.

what is a power of attorney

What is Actually a Power of Attorney?

A Power of Attorney (POA) is a legal document that allows someone to appoint another person to act on their behalf in various personal, business, and legal matters. This appointed individual, known as the agent or attorney-in-fact, has the authority to make decisions and take actions on behalf of the person who created the POA, also known as the principal.

Types of Power of Attorney


General Power of Attorney A general power of attorney grants broad authority to an individual to make decisions on behalf of the principal in various legal and financial matters. This type of power of attorney is often used in situations where the principal is unable to handle their own affairs, such as due to illness or incapacity.
Limited Power of Attorney A limited power of attorney grants specific powers to an individual for a specific purpose or period of time. For example, a limited power of attorney may be used to authorize someone to make decisions about a specific financial transaction, such as selling a property or signing a contract, on behalf of the principal.
Durable Power of Attorney A durable power of attorney remains in effect even if the principal becomes incapacitated or unable to make decisions on their own. This type of power of attorney is often used in estate planning to ensure that someone can manage the principal's affairs if they become unable to do so themselves.
Healthcare Power of Attorney A healthcare power of attorney, also known as a medical power of attorney or healthcare proxy, grants an individual the authority to make healthcare decisions on behalf of the principal. This type of power of attorney is often used in situations where the principal is unable to make decisions about their own medical care.
Springing Power of Attorney A springing power of attorney only goes into effect under certain circumstances, such as if the principal becomes incapacitated or unable to make decisions on their own. This type of power of attorney provides a mechanism for transferring decision-making authority when needed but allows the principal to retain control over their affairs until that point.
What does a power of attorney do? Having a power of attorney in place can provide peace of mind knowing that someone you trust will be able to handle your affairs if you are unable to do so. It also ensures that your wishes are followed and that your best interests are protected. Without a power of attorney, it may be necessary for a court to appoint a guardian or conservator to make decisions on your behalf, which can be a costly and time-consuming process.

When do you need a Power of Attorney


  • Managing finances
A power of attorney can be used to grant authority to the agent to manage the principal's finances, such as paying bills, managing investments, and handling other financial matters. This can be especially important if the principal becomes incapacitated or otherwise unable to handle their own finances.
  • Making healthcare decisions
A healthcare power of attorney, a specific type of power of attorney, gives authority to the agent to make medical decisions on behalf of the principal if they are unable to do so. This can include decisions about medical treatment, end-of-life care, and other healthcare matters.
  • Real estate transactions
A power of attorney can grant authority to the agent to buy or sell real estate on behalf of the principal. This can be useful if the principal is unable to be physically present for the transaction or is otherwise unable to handle the details themselves.
  • Business transactions
A power of attorney can be used in business settings to grant authority to the agent to make business decisions on behalf of the principal. This can be especially helpful if the principal is out of the country or otherwise unavailable to handle business matters.
  • Legal matters
A power of attorney can be used to grant authority to the agent to handle legal matters on behalf of the principal, such as signing legal documents, filing paperwork, and representing the principal in court.
It is important to choose someone you trust to act as your power of attorney. This person should be competent, reliable, and able to make decisions in your best interests. Additionally, it is important to discuss your wishes and expectations with this person so they are aware of your preferences.

Who can override a power of attorney?

In most cases, only a court has the power to revoke or override a power of attorney. This typically occurs when there is evidence of abuse or neglect by the person holding the power of attorney, or if it can be proven that the power of attorney is not acting in the best interests of the person who granted it.
It is important to note that simply disagreeing with the decisions made by the person holding the power of attorney is not sufficient grounds to override it. The person holding the power of attorney is legally obligated to act in good faith and in the best interests of the person who granted the power. If there are concerns about the actions of the person holding the power of attorney, it may be necessary to seek legal advice and potentially petition the court to intervene.

In some cases, a power of attorney may also contain provisions that allow for it to be revoked or modified by the person who granted it. This can typically be done by drafting a new power of attorney document that expressly revokes the previous one. It is important to ensure that any changes to a power of attorney are properly executed and in compliance with state laws in order to avoid any disputes or challenges down the road.

What are the limits of a power of attorney?

One of the main limitations of a power of attorney is that it only gives the designated agent the authority to act within the scope specified in the document. For example, if a person grants someone a POA to handle their financial affairs, the agent cannot make decisions on their behalf regarding medical treatment or personal care unless specifically authorized to do so in the POA.
POA does not grant unlimited authority to the agent. The agent must always act in the best interests of the person who granted the POA, and cannot use their authority to benefit themselves or make decisions that go against the wishes of the grantor.

Another important limitation of a power of attorney is that it does not override the legal rights of the person who granted it. For example, if a person becomes incapacitated and unable to make decisions for themselves, the agent named in their POA may have the authority to make decisions on their behalf. However, if the incapacitated person's wishes are known and conflict with the decisions made by the agent, those wishes must be taken into consideration.

It's also worth noting that a power of attorney can be revoked or amended at any time by the person who granted it, as long as they are still competent to make such decisions. This means that if the grantor no longer trusts the agent or wishes to change the scope of authority granted, they have the right to do so.

How to set up power of attorney


Step 1. Decide on the type of power of attorney you need There are two main types of power of attorney – a general power of attorney and a durable power of attorney. A general power of attorney gives someone the authority to make financial decisions on your behalf, while a durable power of attorney remains in effect even if you become incapacitated.
Step 2. Choose an agent Your agent is the person you designate to make decisions on your behalf. This should be someone you trust, who understands your wishes and is capable of managing your affairs responsibly. It could be a family member, friend, or even a professional advisor.
Step 3. Consult with a legal professional Setting up power of attorney involves legal complexities, and it is important to consult with a legal professional to ensure that the document is properly drafted and executed. A lawyer can help you understand the legal implications of power of attorney and make sure that your wishes are clearly outlined in the document. Consult with Michael J. Englert today to get started on this important aspect of estate planning.
Step 4. Sign and notarize the document In order for your power of attorney to be legally valid, you must sign it in the presence of a notary public. This ensures that your identity is verified and that the document is witnessed and properly executed.
Step 5. Distribute copies of the document Make sure to give copies of your power of attorney to your designated agent, as well as any other relevant parties, such as your financial institutions or healthcare providers. This will ensure that everyone is aware of your wishes and can act accordingly.
Step 6. Review and update as needed It's important to regularly review your power of attorney and make any necessary updates or changes as your circumstances or preferences evolve. This will help ensure that your affairs continue to be managed according to your wishes.

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