The short answer
A power of attorney (POA) is a document that authorizes a person you choose — your 'agent' — to act on your behalf. It's a core part of planning for incapacity: if an illness or injury leaves you unable to manage your own affairs, your agent can step in without a court appointing one.
The two kinds you need
- Financial (durable) power of attorney: authorizes your agent to manage your finances — bank accounts, bills, property, investments — if you can't
- Healthcare power of attorney: names a healthcare agent to make medical decisions for you when you're unable to, often paired with a living will and HIPAA authorization
Why 'durable' matters
A plain power of attorney ends the moment you become incapacitated — exactly when you most need it. A durable power of attorney stays in effect through incapacity. For estate planning, durability is essential; a non-durable POA defeats the purpose.
Signing requirements for powers of attorney vary by state — some require a notary, some require witnesses, some both. Your state's page summarizes the rules where you live.
Without a power of attorney
If you become incapacitated without a POA in place, your family generally has to petition a court to appoint a guardian or conservator to manage your affairs — a process that is public, slow, and expensive, and may put someone you wouldn't have chosen in control. A power of attorney avoids all of that by naming your agent in advance.