A power of attorney is a person you name to handle money, property, or medical decisions on your behalf
The person you choose is called your agent, attorney-in-fact, or proxy — the terms mean the same thing. They are not a lawyer unless you hire one. They are straightforward someone you trust to act in your place, either right now or later if you become unable to decide for yourself. You decide what powers they get, when those powers start, and how long they last.
The person you name can be a family member, a friend, a professional fiduciary (someone paid to manage finances for others), or a lawyer. There is no legal requirement that they have any special training or license. What matters is that you trust them to follow your wishes and act honestly with your money and property.
Key Takeaways
- Your agent can be anyone you trust — a spouse, adult child, friend, or paid professional — but they must be at least 18 years old and mentally capable of understanding the role.
- You can name more than one agent, but they can work together, separately, or in sequence depending on how you write the document.
- Your agent's powers only exist in the document you sign; they have no authority unless you give it to them in writing.
- You can name a backup agent to step in if your first choice dies, becomes unable to serve, or refuses the role.
- Your agent must keep records of what they spend your money on and can be sued if they steal from you or act against your interests.
Who can legally serve as your agent
Your agent must be at least 18 years old and mentally capable of understanding what the role means. Most states do not ban family members, friends, or professionals from serving. Some states do not allow your agent to be a healthcare provider who treats you, unless that person is a family member — this rule prevents conflicts of interest in medical decisions.
You can name anyone you want, but practical choices matter. Your agent will have access to your bank accounts, investment accounts, and property records. They may need to sign documents, speak to your doctors, or negotiate with creditors. Choose someone who is organized, trustworthy, and willing to take on the work. If you name someone who lives far away or is too busy, they may struggle to act quickly when you need them.
A professional fiduciary — someone licensed or bonded to manage money for others — is a common choice when you have no family member you trust or when family relationships are complicated. You pay them a fee, usually a percentage of the assets they manage. Banks and law firms can also serve as agents, though they typically charge for the service.
Naming more than one agent
You can name two or more agents to share the role. How they work together depends on what you write in the document. You can require them to act together on every decision (called "jointly"), allow each to act alone (called "severally"), or split the duties — for example, one handles money and one handles healthcare.
Naming co-agents can protect you because two people watching each other are less likely to steal or make careless mistakes. It also means decisions do not stall if one agent is sick or traveling. The downside is that banks and other institutions may move slowly when they have to get signatures from two people, and disagreements between co-agents can freeze your accounts.
Many people name a primary agent and a backup (called an alternate or successor agent). The backup only steps in if the first agent dies, becomes unable to serve, or tells you they do not want the job. This is simpler than co-agents and avoids delays.
What your agent can and cannot do
Your agent's powers are only what you write into the document. You can give them broad authority to handle all your money and property, or you can limit them to specific tasks — for example, "sell my house" or "pay my bills from my checking account." You can also set rules, such as "do not spend more than $5,000 without asking me first" or "do not change my will."
Your agent cannot do anything the document does not allow. They cannot change your will, make gifts to themselves (unless you specifically permit it), or act after you die — that job goes to your executor. They cannot make healthcare decisions unless you give them that power in a separate healthcare power of attorney document. They cannot commit you to a nursing home or psychiatric hospital unless your document explicitly allows it.
Your agent must act in your best interest, not their own. They must keep records of what they spend your money on, and you can ask to see those records at any time. If they steal from you, misuse your accounts, or ignore your instructions, you can sue them and ask a court to remove them.
When your agent's power starts and stops
You decide when your agent's authority begins. A durable power of attorney starts right away and stays in effect even if you become unable to make decisions yourself — this is the most common type. A springing power of attorney only starts if a doctor says you are unable to handle your own affairs. Springing powers are less common because they can cause delays: banks may refuse to accept them until a court confirms you are incapacitated.
Your agent's power ends when you die, when you revoke the document in writing, when you tell your agent they are fired, or on a date you set in the document. If you become unable to make decisions and you did not use a durable power of attorney, a court may have to appoint a conservator or guardian to manage your affairs instead — a slower and more expensive process.
How to remove or replace your agent
You can fire your agent at any time while you are mentally capable of making decisions. You do not need a reason. straightforward tell them in writing that they are no longer your agent, and notify your bank, doctor, and anyone else who has been dealing with them. You should also revoke the old power of attorney document in writing and create a new one naming a different agent if you want someone else to take over.
If you become unable to make decisions and your agent is stealing from you or acting against your interests, a family member or friend can ask a court to remove them. The court will hold a hearing and decide whether to replace your agent with someone else or appoint a conservator to manage your affairs.
Naming an agent for healthcare versus money
You may want different people handling your medical decisions and your finances. A healthcare power of attorney (also called a healthcare proxy or medical power of attorney) lets you name someone to make medical choices if you cannot — whether to use life support, which hospital to go to, what medications to take. A financial power of attorney covers money and property.
These are separate documents with separate agents. You might name your adult child to handle healthcare because they know your values and medical history, and name a professional fiduciary to handle money because they have experience managing accounts and paying bills. Or you might name the same person for both roles if you trust them equally in both areas.
Frequently Asked Questions
Can I name my spouse as my power of attorney?
Yes. A spouse is a common choice because they know your finances and your wishes. Keep in mind that if you divorce, the power of attorney does not automatically end — you will need to revoke it and create a new one. If your spouse dies, their authority ends when ready.
What if my agent and I disagree about a decision?
If you are still able to make decisions, your wishes override your agent's. You can tell them what to do, and if they refuse, you can fire them. If you are unable to make decisions, your agent's choice stands unless a court intervenes.
Can my agent be paid for the work?
Yes. You can agree to pay them a flat fee, an hourly rate, or a percentage of the assets they manage. You can also say they serve for free. The amount should be reasonable and documented in writing.
What happens if my agent dies before I do?
If you named a backup agent, they take over. If you did not name a backup, your power of attorney is no longer in effect, and you will need to create a new document naming someone else. If you are unable to make decisions at that point, a court may appoint a conservator.
Do I need a lawyer to name a power of attorney?
No. You can write and sign a power of attorney yourself in most states, though the document must follow your state's rules about witnesses and notarization. A lawyer can help make sure the document is valid and covers all the powers you want to give.