Legal basics

Power of attorney, in plain English

Who handles things if you can't?

A power of attorney (POA) is a document that lets someone you trust act for you while you're alive but unable to, for example after an accident or during a serious illness. It isn't about what happens after death.

The two kinds most people need

• Financial power of attorney: lets your chosen person pay bills, manage bank accounts and handle taxes.
• Healthcare power of attorney (also called a healthcare proxy): lets them make medical decisions if you can't speak for yourself.

Words you'll see

• Durable: it keeps working if you become unable to decide for yourself. This is the kind you want.
• Springing: it only starts once a doctor confirms you can't decide. It sounds safer, but it can cause delays.
• Agent: the person you choose.

What happens without one

Your family may have to go to court to get guardianship or conservatorship before they can pay your bills or talk to your bank. That can take months and cost thousands.

Every POA ends at death. After that, the executor named in your will takes over. They're two separate roles in two separate documents, though many people pick the same person for both.