A power of attorney (or letter of attorney) is a written authorization to represent or act on someone else’s behalf in their private and business affairs. In the context of Coming Home Together this is usually a document giving your partner, children if you have them, or a trusted friend the legal power to act according to your wishes if you should be incapacitated for any reason. Some jurisdictions require that powers of attorney be notarized or witnessed, but most recognize a power of attorney as long as it is signed by the grantor. Though the principle of power of attorney is similar wherever you live, it’s worth checking exactly what’s involved where you live. As with having a will, the most important thing is making sure you have written a power of attorney document while you are still fully capable of doing so!

Power of attorney often has two main sections, one covering financial arrangements and the other covering health and related arrangements. In Britain there are three types of PoA:

  • Ordinary power of attorney, which covers decisions about your financial affairs and is valid while you have mental capacity. It is suitable if you need cover for a temporary period (hospital stay or holiday) or if you find it hard to get out, or you want someone to act for you.
  • Lasting power of attorney, which covers decisions about your financial affairs and about your health and care, including your wishes about where you want to live. It comes into effect if you lose mental capacity, or if you no longer want to make decisions for yourself.
  • Enduring power of attorney, which were replaced by lasting powers of attorney in October 2007. If you made and signed an EPA before 1 October 2007 it is still valid, though it is worth considering replacing it with an LPA.

In the USA there are four flavors:

  • Limited power of attorney, which gives someone else the power to act in your stead for a very limited purpose, such as the right to sign a deed to property for you on a day when you are out of town. It usually ends at a time specified in the document.
  • General power of attorney gives your agent all the powers and rights that you have yourself. For example, a general power of attorney may give your agent the right to sign documents for you, pay your bills, and conduct financial transactions on your behalf. You could use a general power of attorney if you were not incapacitated, but still needed someone to help you with financial matters. A general power of attorney ends on your death or incapacitation unless you rescind it before then.
  • Durable power of attorney can be general or limited in scope, but it remains in effect after you become incapacitated. Without a durable power of attorney, if you become incapacitated no one can represent you unless a court appoints a conservator or guardian. A durable power of attorney remains in effect until your death unless you rescind it while you are not incapacitated.
  • Springing power of attorney allows your agent to act for you if you become incapacitated, but it does not become effective until you are incapacitated. If you are using a springing power of attorney, it is very important that the standard for determining incapacity and triggering the power of attorney is clearly laid out in the document.

There are plenty of free templates for PoAs on the internet, so there is no excuse for not making the time to do it!