5 FAQ About Powers of Attorney

A power of attorney (POA) is a document that gives someone the legal right to make decisions on your behalf. This type of legal arrangement is especially useful in the event of sudden illness or injury. Take a look at the following answers to learn more about POAs.

What is the principal?

The person granting the POA is the principal, while the person appointed POA is called the agent or attorney-in-fact. A principal must be 18 years or older and have the mental competence to make crucial decisions. 

What responsibilities does a POA contain?

There is a range of tasks an agent can handle. Typically, POAs are created to give a trusted friend or family member the ability to make important medical or financial decisions. For example, they might have access to your bank account to pay bills for you.

What’s a durable POA?

This type of POA is designed to protect you if in the event of illness or injury. Specifically, an agent will act on your behalf if you are mentally incapacitated. A durable POA remains in effect until it’s revoked or the principal dies.

Can you still act independently after granting a POA?

Yes. This is probably the most important and crucial element of a POA. Mainly, a POA does not take any power away from you. You still have complete control over your entire life, including health and financial matters. A general or regular POA does not prevent you from making decisions. A durable POA won’t affect any choices if you can operate under your own capacity. 

Who should be granted this power?

This decision is entirely up to you, but it is important to select someone trustworthy, although it is certainly possible to appoint different people for different matters, we normally recommend that you appoint a trusted few to handle all of your affairs. If you have any doubts or concerns you are probably selecting the wrong individual to act on your behalf.