Do You Need to Grant Someone Power of Attorney?

Granting someone power of attorney (POA) is more than just filling out a one-page form — it means trusting someone to act on your behalf when you’re unable to do so. Your chosen agent, known as your attorney-in-fact, is legally obligated to protect your interests, assets, and finances. They can act for you only when you cannot, but as long as you are able, you still control your affairs.

*Decide What Authority to Grant*

The first step is deciding exactly what powers you want to give and when you want them to apply. You may create a financial POA to handle your personal business, or a healthcare POA so your agent can make medical decisions in emergencies. A healthcare POA only allows your agent to follow the wishes you’ve clearly set out — they cannot override your stated preferences.

A financial POA can be “durable” or “springing.” Durable means your agent can act immediately and continue if you become incapacitated. Springing means your agent’s power begins only if a certain event happens, like your incapacitation.

*Draft the Document*

Drafting a POA can be as simple as downloading forms from your state’s website or courthouse. Most states have statutory forms to make this easy.

If you choose to draft your own POA document, it’s wise to have it reviewed by a lawyer before signing to ensure it fully reflects your intentions.

At a minimum, your POA should clearly specify the powers you’re granting your agent. The more precise the wording, the better. If you want the POA to be durable, make it clear that any future incapacity does not revoke the document. Both you and your agent must sign the POA, and in most states, it needs to be notarized.

*Distributing Copies*

While you usually don’t need to file your POA with the court, laws differ by state. Check with a local attorney or courthouse to know what’s required in your area. Even if filing is not required, make sure that everyone who needs a copy—like your doctor for a health care POA or your bank for a financial POA—has one. Some states require recording the POA with the county land records if it grants authority to buy or sell real estate.

*Revoking the Power of Attorney*

Certain events can automatically revoke your POA, even if you did not intend it. For example, in many states, divorce voids a POA if your spouse was your agent. Legal separation may also end your spouse’s authority. Your death always cancels the POA. However, you can revoke it at any time while mentally competent.

If you want to grant POA for a limited time, such as during travel, specify an expiration date or event in the document.