Power of Attorney

Intermediate

A power of attorney is a legal document that gives one or more chosen people the authority to make decisions and act on someone’s behalf, such as managing their money, property or, in some forms, health and welfare.

A power of attorney lets someone, called the donor or principal, appoint a trusted person, called an attorney or agent, to act for them. It can be useful if the person is travelling, unwell or, most importantly, loses the mental capacity to make decisions.

There are different types. A general power of attorney may cover financial matters for a limited time and usually ends if the person loses mental capacity. A lasting power of attorney in England and Wales, or a durable power of attorney in the United States, continues after the person loses capacity. Some versions cover health and care decisions rather than finances.

For example, an older person might appoint their adult child as attorney so that, if they develop dementia, the child can pay their bills, manage their bank accounts and sell their house if needed to fund care.

Without one, families may need to apply to a court to manage a person’s affairs, which can be slow and costly. Powers of attorney must usually be made while the person still has capacity, and many must be registered before use. Rules differ between countries.

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