Choosing Power of Attorney

Last Updated: December 30, 2025

A power of attorney is a document that gives another person (your attorney-in-fact) the ability to act on your behalf in certain matters. In other words, in estate planning, it is frequently used to specify someone to make decisions about legal and financial matters if you’re no longer able to make your own choices. 

Designating a power of attorney during retirement is especially important because, as you age, there’s an increased possibility that you may need a trusted family member or friend (your attorney-in-fact) to help you take care of your financial affairs (i.e. monitor your bank and investment accounts, pay bills...) and act on your behalf. Additionally, many retirees travel or engage in new activities that could potentially result in an unexpected accident. Illness and other issues can also crop up during retirement, making it a time that’s especially important for you to have someone you trust ready to step in and act in your best interest.

How to Choose a Power of Attorney

When deciding on a power of attorney, there are three main things to consider:

• Trustworthiness. Can you reasonably expect the person you choose as your attorney-in-fact to make good choices in your best interest? Do you know they will be honest?

• Proximity. It’s best to have an attorney-in-fact who lives near you. They can be on the scene to help out, as well as review documents and make other decisions quickly. In addition, different states have different rules about the types of powers and authorities you can give to your attorney-in-fact, which can complicate things if your attorney-in-fact resides in another state. 

• Good with money. Because your attorney-in-fact may be able to make decisions about your finances, it’s often a good idea to consider someone who knows how to handle money and can be trusted to make responsible financial choices.

Types of Power of Attorney

There are different types of power of attorney. Some of them can be used together.¹ Below, we’ve listed some of the more common types that you may want to consider utilizing.

General Power of Attorney

This type of power of attorney offers the most control over your situation, so it’s especially important that the person you choose be trustworthy and competent. Your general power of attorney can take care of real estate, financial, business, and legal issues on your behalf, whether or not you’re incapacitated. In some states, they can even make gifts on your behalf. A general power of attorney can be useful if you’re traveling, or if you’re retired and don’t want to handle your business needs.

Durable Power of Attorney

A durable power of attorney is basically the same as a general power of attorney. As soon as you sign the form, the person you’ve chosen to act as your attorney-in-fact is empowered and authorized to act on your behalf. The benefit, though, is that it is durable and your attorney-in-fact can continue acting for you if you become unable to make your own decisions. In other words, your attorney-in-fact can act on your behalf even if you become incapacitated and cannot act for yourself. But a general power of attorney that is not durable will terminate when you become incapacitated and your attorney-in-fact will lose his or her authority to act on your behalf. You can rescind a durable power of attorney or a general power of attorney at any time if you fill out a revocation form provided you are not incapacitated. 

Medical Power of Attorney

Also called an advance directive or healthcare proxy, the medical power of attorney allows someone else to make decisions about your healthcare or medical treatment when you are not able to make such decisions for yourself. For example, if you’re incapacitated, the person you appoint as your attorney-in-fact pursuant to your medical power of attorney will make choices for you, often based on the guidance you’ve set forth in your living will.

Limited Power of Attorney

Rather than granting broad authority to make decisions on your behalf, a limited power of attorney is designed to act in certain ways or with limited authority. For example, instead of giving a General Power of Attorney, which gives your attorney-in-fact broad discretion to act on your behalf, you might only want to give your attorney-in-fact the authority to act in a special matter or to only perform a specific task. One example is being able to cash checks for you, or having access to a specific account to pay specific bills and house expenses. That way, your power of attorney can perform certain tasks on your behalf, such as when you’re traveling or living overseas in retirement so that you don’t have to worry about them. Like other powers of attorney, you can terminate or change your attorney-in-fact at any time provided you are not incapacitated. 

Springing Power of Attorney

This is a type of power of attorney that only applies when a condition precedent occurs; in other words, it springs into existence when certain enumerated facts happen. Frequently, durable powers of attorney can also be springing powers of attorney, such that they only become operative when you are incapacitated. For example, if you retire overseas and become incapacitated, the springing power of attorney will only come into effect at that time so that someone else can handle important financial and legal matters on your behalf — including potentially making arrangements to get you back to the United States. A springing power of attorney works when you’re not traveling as well. 

Now that you’re familiar with the different types of wills and powers of attorney, it’s time to ensure your estate has a beneficiary assigned. And remember - if you move, be sure to keep everything up to date with the correct address, along with your attorney-in-fact addresses as well.

SOURCES 

1. “5 Different Types of Power of Attorney.” OneNotary, 30 July 2021,  https://onenotary.us/poa-types/. Accessed 30 December 2025.