Plan for the Unexpected with a Power of Attorney
A durable power of attorney ensures that someone you trust can manage your finances and legal affairs if you become unable to do so yourself — without court intervention.
What Is a Power of Attorney?
A power of attorney (POA) is a legal document that authorizes another person — called your agent or attorney-in-fact — to act on your behalf in financial and legal matters. It is one of the most important documents in any complete estate plan.
Without a power of attorney, if you become incapacitated due to illness, injury, or cognitive decline, your family may need to petition a court for guardianship or conservatorship before anyone can manage your affairs. That process is costly, time-consuming, and public. A properly drafted POA avoids it entirely.
Types of Power of Attorney
Not all powers of attorney are the same. The right type depends on your circumstances and goals.
Durable Power of Attorney
Remains in effect even if you become incapacitated. This is the most common type used in estate planning because it ensures your agent can act when you need them most — precisely when you can no longer act for yourself.
Springing Power of Attorney
Only takes effect upon a specific triggering event — typically a determination that you have become incapacitated. While this may feel more protective, it can create delays when time is critical, as the trigger condition must first be established.
Limited (Special) Power of Attorney
Grants your agent authority over a specific transaction or for a defined period of time — for example, authorizing someone to close on a real estate sale while you are traveling. It expires once the task is complete or the time period ends.
General Power of Attorney
Grants broad authority over financial and legal matters but is typically non-durable — it becomes void if you lose capacity. Useful for short-term planning but not a substitute for a durable POA in a comprehensive estate plan.
What Your Agent Can Do
Under a durable power of attorney, your agent can be authorized to handle a wide range of financial and legal matters on your behalf, including:
- Manage bank accounts, investments, and retirement funds
- Pay bills, taxes, and ongoing financial obligations
- Buy, sell, or manage real estate
- Apply for government benefits such as Medicaid or Social Security
- Make gifts or charitable contributions on your behalf
- Operate or manage a business
- Handle legal claims and litigation
Choosing the Right Agent
Your agent will have significant authority over your financial life. Choose someone who is trustworthy, organized, and willing to act in your best interest — not necessarily the person closest to you emotionally. Many clients name a spouse or adult child, but a trusted friend or professional fiduciary can also serve. We recommend naming at least one successor agent in case your first choice is unable or unwilling to serve.
Key considerations
- Trustworthiness and financial responsibility
- Availability and willingness to serve
- Ability to handle financial and legal matters
- Geographic proximity for practical tasks
- Ability to work cooperatively with other family members
What happens without a power of attorney?
If you become incapacitated without a valid power of attorney in place, no one — not even your spouse — has automatic legal authority to manage your finances. Your family would need to file for a court-supervised conservatorship, which can take months, cost thousands of dollars in legal fees, and require ongoing court oversight. A durable power of attorney prevents all of this with a single, well-drafted document.
A power of attorney is one of the most overlooked documents in estate planning — and one of the most important. I've seen families face real hardship because a loved one became incapacitated without one. It's a straightforward document that can prevent an enormous amount of stress.
Losmin Jimenez Gregory, Esq.
Estate Planning Attorney · Licensed in FL, MD, DC & MA
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Protect Your Family Before the Unexpected Happens
A power of attorney takes effect when you need it most. Don't wait for a health crisis to put one in place — schedule a free consultation today.