Power of Attorney (POA)

What it means

A power of attorney is a legal document where one person (called the principal) gives another person (called the agent) the authority to act on their behalf for financial and legal matters. Common uses include managing bank accounts, paying bills, selling property, and filing taxes. A durable power of attorney stays in effect even if the principal becomes unable to make their own decisions. It can be revoked at any time as long as the principal is mentally able to do so. A power of attorney is not the same as a health care proxy — the POA covers money and property, the proxy covers medical decisions.

When you might hear this

You hear this when someone needs another person to handle their money, pay their bills, or make financial decisions for them — usually because of age, illness, or being out of the country.

What to ask