What is a power of attorney and do I need one?

Full Answer

A durable financial power of attorney lets your agent pay bills, manage investments, sell property, and handle other financial matters. 'Durable' means the document remains effective even if you become incapacitated — which is precisely when you need it most.

A healthcare power of attorney (sometimes combined with a living will) lets your agent make medical decisions if you cannot speak for yourself. It also provides HIPAA authorization so your agent and family can speak with your providers.

Without these documents, your family will likely need a court-ordered guardianship to handle your affairs — a public, expensive, and time-consuming process. Every adult should have a basic power of attorney in place.