A Power of Attorney (POA) is a legal document that allows you to appoint someone—called an agent or attorney-in-fact—to act on your behalf. This authority can be broad or limited and may cover managing finances, paying bills, managing property, or making legal decisions.

There are different types of POAs to consider depending on your needs:

• A General POA grants wide-ranging authority to manage your affairs.
• A Limited or Specific POA restricts authority to a particular task or time period.
• A Durable POA remains in effect if you become incapacitated.
• A Springing POA only becomes effective under specific conditions, such as a medical diagnosis of incapacity.

Why Is a POA Important?

A POA ensures your wishes are respected and your responsibilities are managed, even if you can’t do so yourself. It offers several key benefits such as:

• Continuity: Life is unpredictable. A POA ensures someone you trust can step in quickly to manage your financial or legal matters if you are unable to.
• Avoids Legal Hassles: Without a POA, your family may need to go through the courts to obtain authority, which is often time-consuming and expensive.
• Custom Control: You decide who your agent is, what they can do, and when they can act. You retain control over your future, even when you're unable to act directly.
• Peace of Mind: Simply having a plan in place brings relief—for you and your loved ones.

It’s important to consult an experienced attorney to draft your POA documents properly. State laws vary, and an estate or elder law professional can ensure your POA is valid, reflects your intentions, and includes all necessary details.

Establishing a POA while you’re healthy is a proactive move that protects you, your family, and your legacy.

Alyssa Proctor, MBA, CFP ®, CTFA, is Vice President and Wealth Advisor for F&M Trust.