What Does a Power of Attorney Give You Authority Over?
It usually starts with a phone call. A dad's in the hospital. A spouse is recovering from surgery. Or an adult child is trying to access a parent’s bank account — only to be told, “We can’t speak with you unless you have Power of Attorney.”
That’s when it hits: You thought love and responsibility were enough. Turns out, you needed paperwork too.
So, what exactly does a Power of Attorney let you do — and why does it matter?
Many people have heard of the term but may not fully grasp the scope of authority that comes with it. Think of a Power of Attorney like handing someone your keys — not just to your car, but to your finances, your care, and sometimes your life decisions. If you’re caring for aging parents, or want to protect your spouse from legal headaches, this document can cover various areas, giving the appointed individual specific or broad powers.
In this blog post, we’ll explore what power of attorney gives you authority over, the types of powers granted, and how this legal tool is used in everyday life.
Understanding the Power of Attorney
Before diving into the details of authority, it's essential to understand the power of attorney. Power of attorney is an arrangement where one person (the principal) appoints another person (the agent or attorney-in-fact) to act on their behalf. The powers granted can be very specific or broad, depending on the principal's wants and needs.
The primary purpose of a power of attorney is to allow the agent to make decisions or take actions for the principal in scenarios where the principal is unavailable, incapacitated, or simply prefers to delegate some responsibilities.
Types of Powers Granted by Power of Attorney
Power of Attorney comes in different forms — each with a specific purpose. Here are the ones you need to know:
General Power of Attorney
A general power of attorney grants the agent broad rights to handle various affairs, such as financial transactions, managing property, signing legal documents, and more. Essentially, this type gives the agent significant authority over many aspects of the principal's life.
Durable Power of Attorney
A durable power of attorney remains in effect even if the principal becomes mentally or physically incapacitated. This is especially useful for long-term planning, allowing the agent to continue managing matters without interruption.
Special or Limited Power of Attorney
In a limited power of attorney, the agent's authority is narrowly defined. For example, the agent may have power only to handle a specific financial transaction or to manage a particular property. This type is ideal when the principal wants to maintain most control while delegating a specific task.
Medical Power of Attorney
A medical power of attorney authorizes the agent to make healthcare decisions on the principal's behalf when they cannot do so. This type clarifies who can consent to medical treatments and make vital health decisions.
Authority Over Financial Matters
Financial management is one of the primary areas of power of attorney. Depending on the terms, the agent may have authority over:
Bank accounts: Depositing and withdrawing funds, managing transactions, and overseeing accounts.
Property management: Buying, selling, leasing, or maintaining real estate.
Investment decisions: Managing stocks, bonds, and other investment assets.
Tax matters: Filing tax returns and handling communications with tax authorities.
Bill payments: Paying bills and managing debts.
Power of attorney can give your agent control over almost every financial sphere, ensuring affairs are managed smoothly if you cannot do so yourself.
Authority Over Legal and Personal Decisions
Beyond finances, power of attorney may empower the agent to handle:
Entering or defending legal claims on behalf of the principal.
Managing personal matters, such as overseeing government benefits.
Making decisions related to insurance policies.
Authorizing contracts and agreements.
The agent can make healthcare decisions and manage your medical care preferences with a medical power of attorney.
Limitations of Power of Attorney
A Power of Attorney is powerful — but not unlimited. Your agent can’t make a will for you, change your beneficiaries, or override your wishes. And once you pass away, the authority ends.
That’s why it’s critical to choose someone you trust, and why a POA should be just one part of your estate plan — not the whole plan.
Final Thoughts
Knowing what a power of attorney is and what it authorizes is essential for anyone planning their future or wanting to ensure their affairs are in trusted hands. Power of attorney can give an agent authority over financial, legal, medical, and personal matters, depending on the type and scope of the document created. Whether you need broad authority or limited powers, a POA offers a flexible tool for safeguarding your interests when you cannot act for yourself.
In our firm, we believe stewardship means preparing now — so your family isn’t left scrambling later. Need help figuring out what kind of POA is right for your situation? Let’s walk through it together — schedule a free discovery call today. Don’t wait until it’s too late to give someone the authority they need to protect the people you love.
