Power of Attorney

A document authorizing someone to act on your behalf if you cannot.

Definition

A power of attorney lets you appoint someone to make financial or medical decisions for you if you become incapacitated. A durable financial POA covers money matters; a health care POA covers medical choices. Having these in place avoids a court having to appoint someone during a crisis.

Example

A durable power of attorney lets a trusted person pay your bills if you are hospitalized.

Related terms

Will
A legal document directing how your assets are distributed after death.
Beneficiary Designation
The named recipient on an account or policy, which passes the asset directly and overrides a will.
Revocable Living Trust
A trust you control during life that passes assets to heirs without probate.

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