Power of Attorney Types
Most important paperwork. Get it RIGHT.
4 main types
- General POA — broad financial powers. Ends if you become incapacitated.
- Durable POA — continues if you become incapacitated. **MOST IMPORTANT for seniors**.
- Healthcare POA (Medical POA) — medical decisions only.
- Springing POA — only takes effect when you become incapacitated.
- Most seniors need Durable + Healthcare together.
Why you NEED both
- Without POA — family must go to COURT for guardianship.
- Court process: $5K-15K + 6-12 months.
- Court appoints — may not be person you'd pick.
- Embarrassing public process.
- POA done now = $200-500 + 1 hour.
- Without — bills unpaid, accounts frozen.
Pick your agent carefully
- Trust 100% — they have access to EVERYTHING.
- Live nearby (or willing to travel).
- Financially responsible.
- Will follow your wishes.
- Have backup agent named.
- Multiple agents — joint decisions slows things.
- One primary + one backup is best.
- Adult child #1 most common, doctor/lawyer rarely.
What POA can do
- Pay your bills.
- Manage bank accounts + investments.
- Sign tax returns.
- Sell or buy property (if granted).
- Manage retirement accounts.
- Access safe deposit box.
- Sign contracts on your behalf.
- NOT make medical decisions (separate Healthcare POA).
- NOT change your will.
DIY vs lawyer
- State-specific forms — most states have official POA form.
- LegalZoom, Rocket Lawyer — $50-150. Decent for simple situations.
- Elder law attorney — $200-500. Best for complex.
- Get notarized + witnessed (most states require).
- Give copies to: agent, doctor, bank, kids.
- Update every 5 years.
Free help
AARP — free POA forms by state. FreeWill.com — free POA online for seniors. Legal Aid societies — free for low income. Senior Legal Services via Area Agency on Aging — often free. Don't put off — most seniors regret waiting until crisis.