Written by Benjamin Kingsley

Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.

Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.

A power of attorney (POA) is a legal document that grants authority to an individual (known as the agent or attorney-in-fact) to act on behalf of another person (the principal) in specified matters. It’s an essential tool in estate planning and can be crucial for managing affairs if the principal becomes incapacitated or unable to make decisions for themselves.

While the term “power of attorney” is often used broadly, it’s important to distinguish between different types of POAs, particularly financial and medical powers of attorney. In general parlance, when people refer to a “power of attorney,” they typically mean a financial power of attorney. However, this common usage can lead to confusion, as financial and medical powers of attorney are usually separate documents with distinct purposes.

A financial power of attorney, also known as a general power of attorney or durable power of attorney for finances, grants the agent authority to manage the principal’s financial affairs. This can include tasks such as paying bills, managing investments, filing taxes, and conducting real estate transactions. The scope of authority can be broad or limited, depending on the principal’s wishes and the document’s specific provisions.

On the other hand, a medical power of attorney, sometimes called a healthcare power of attorney or healthcare proxy, designates an agent to make medical decisions on behalf of the principal if they become incapacitated or unable to communicate their wishes. This document is focused solely on healthcare-related matters and does not grant any authority over financial affairs.

It’s crucial to note that the exact terminology and requirements for these documents can vary by state. Some states may use different terms or combine certain aspects of financial and medical powers of attorney. However, in most U.S. states, these are separate documents that serve distinct purposes in an individual’s overall estate plan.

To ensure comprehensive coverage of both financial and medical matters, it’s generally advisable to have both types of powers of attorney in place. This approach provides clarity and helps avoid potential conflicts or gaps in decision-making authority.

Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.

Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.