What powers a power of attorney actually has
A power of attorney's rights depend entirely on what the document says. There is no standard set of powers—you decide what authority you give when you create the document. The person you name (called the agent or attorney-in-fact) can only do what the document explicitly allows. If the document says they can pay bills, they can pay bills. If it does not say they can sell your house, they cannot sell your house, even if they think it would help you.
The document itself is the contract between you and your agent. Courts and banks will read it word for word. A broad document might say "my agent can do anything I could do regarding my finances." A narrow one might say "my agent can only access my bank account to withdraw money for medical expenses." The agent's rights end the moment the document ends—either because you revoke it, you die, or it expires on a date you set.
Key Takeaways
- A power of attorney's authority is limited to exactly what the document states—no broader, no narrower.
- Common powers include paying bills, managing bank accounts, filing taxes, and handling real estate, but only if the document names them.
- An agent must act in your interest, keep your money separate from theirs, and account for every transaction—these duties are legally required even if the document does not mention them.
- The agent's power ends when ready if you revoke the document, if you die, or on an expiration date you set in advance.
- A durable power of attorney continues if you become unable to make decisions; a non-durable one ends automatically if you lose capacity.
Financial powers: what agents can do with money and property
If your power of attorney document includes financial authority, your agent can typically access bank accounts, withdraw cash, pay bills from your accounts, and deposit checks in your name. They can also manage investments, buy or sell real estate, refinance mortgages, and handle rental properties—but only if the document specifically names those powers. Many people create a financial power of attorney to handle these tasks if they become ill, travel for an extended period, or straightforward want help managing accounts.
The document might say your agent can do "all financial acts" or it might list specific powers one by one. A narrow document might say "pay utilities and medical bills only." A broad one might say "manage all bank accounts, investments, and property." Banks and title companies will ask to see the document before they let your agent act. Some institutions have their own power of attorney forms they prefer you use, because they know exactly what those forms allow.
Your agent cannot use your money for themselves unless the document explicitly says so. If they do, they are breaking the law. They must keep your money separate from theirs, write down what they spend, and show you (or a court) a full accounting if you ask. This duty exists whether the document mentions it or not—it is built into the law.
Healthcare powers: medical decisions and HIPAA access
A healthcare power of attorney (sometimes called a healthcare proxy or medical power of attorney) gives your agent the right to make medical decisions if you cannot. This is different from a financial power of attorney. You create it separately, and it covers only health matters. Your agent can consent to treatment, refuse treatment, choose doctors, access your medical records, and make end-of-life decisions—but only the decisions the document allows.
The document might say your agent can "make all medical decisions" or it might limit them to "decisions about life support only." Some people write detailed instructions about what they do and do not want (called a living will), and name an agent to carry those wishes out. Your agent also gets automatic access to your medical records under HIPAA (the federal health privacy law) once the document is signed and witnessed. Hospitals and doctors will ask to see it before they talk to your agent about your care.
Your agent must follow your known wishes. If you told them you never want to be on a ventilator, they cannot authorize one just because they think it is best. If you left no instructions, they must decide based on what they think you would have wanted, not what they want.
What an agent cannot do, even with a power of attorney
Your agent cannot do anything the document does not allow. If the document covers only finances, they have no power to make medical decisions. If it says they can pay bills but not sell property, they cannot sell your house. If it expires on a date you set, their power ends on that date even if you are still alive and willing.
Your agent also cannot change the power of attorney document itself, create a new will for you, or make gifts of your money to themselves or others unless the document specifically allows gifts. They cannot use your money to pay their own debts. They cannot take out loans in your name. They cannot change beneficiaries on your life insurance or retirement accounts. They cannot vote in your place (voting rights cannot be delegated). And they cannot commit you to a nursing home or long-term care facility unless the document explicitly gives them that power.
If your agent breaks these rules—spending your money on themselves, ignoring your wishes, or acting outside their authority—you can revoke the document, sue them, or report them to the police. After you die, your executor or heirs can also sue an agent who misused funds.
Durable versus non-durable: what happens if you lose capacity
A durable power of attorney continues to work even if you become unable to make decisions due to illness, injury, or dementia. The word "durable" means it survives your loss of capacity. Most people create durable powers of attorney for this reason—they want someone to manage their affairs if they cannot.
A non-durable power of attorney ends automatically the moment you lose capacity. It is rarely used, because it defeats the main purpose of having an agent. Non-durable documents are sometimes created for a specific short-term task (like selling a house while you are out of the country), and the person creating it does not want the agent to have power if they become unable to decide.
To make a power of attorney durable, the document must include specific language saying it survives your incapacity. The exact wording varies by state, but it usually says something like "this power of attorney shall not be affected by the principal's subsequent incapacity." Without that language, courts will assume it ends if you lose capacity.
When and how a power of attorney ends
A power of attorney ends in four ways: you revoke it, you die, it expires on a date you set, or you lose capacity (if it is non-durable). You can revoke a power of attorney at any time, as long as you are mentally able to make decisions. You do not need a reason. You straightforward sign a revocation document, have it notarized, and give copies to your agent and anyone else who has a copy of the original (like your bank or doctor).
If you die, the power of attorney ends when ready. Your agent has no authority over your estate after death—that job goes to your executor (named in your will) or to the court if you have no will. Any money or property your agent was managing reverts to your estate.
If the document says it expires on a specific date, it ends on that date. Some people create powers of attorney that last only a few years and then must be renewed. Others create them to last "until revoked," which means they stay in effect indefinitely unless you cancel them.
How to know what your agent's actual powers are
Read the document itself. The power of attorney is a legal contract, and the only source of truth is what it says. If you created it years ago and cannot remember what you wrote, ask a lawyer to review it. If someone else created it and named you as agent, ask them for a copy and read it carefully. Do not assume you have power to do something just because it seems reasonable—you only have the power the document gives you.
Banks, hospitals, and government agencies will also tell you what powers the document grants. When your agent tries to act, they will ask to see the document. The institution will read it and say yes or no based on what it actually says. If the document is unclear or does not cover what your agent needs to do, you may need to create a new one or have a lawyer clarify the old one in court.
Frequently Asked Questions
Can my agent give themselves money or gifts from my accounts?
No, unless the document explicitly allows it. Your agent must use your money for your benefit, not theirs. If they take money without permission, they are stealing, and you can sue them or report them to police. Some documents do allow "reasonable gifts," but that language must be in the document from the start.
What happens to the power of attorney when I die?
It ends when ready. Your agent has no authority over your estate or property after death. Your executor (named in your will) or the court takes over. Any accounts your agent was managing become part of your estate and go to whoever your will or state law says should receive them.
Can I have more than one agent?
Yes. You can name two or more agents and say they must act together, or you can say each one can act alone. You can also name successor agents who take over if your first choice dies or cannot serve. The document must be clear about how multiple agents work together.
Does my agent need to tell me what they are doing with my money?
Yes. Your agent must keep records of every transaction and show you an accounting if you ask. They must also act in your best interest and cannot mix your money with theirs. If you suspect your agent is misusing funds, you can demand a full accounting in court.
What if I want to limit my agent's power later?
You can revoke the entire document and create a new one with narrower powers, or you can create a new document that overrides the old one. You cannot change the existing document—you have to revoke it and start over. Give written notice to your agent and anyone else who has a copy.