How to make a power of attorney in 8 steps

Despite our best efforts, none of us can plan for every situation or know exactly what will happen to us in this life. One way to gain peace of mind when facing the uncertainty of the future is to create a power of attorney.

A power of attorney, or POA, is a legal document that lets you give another person the authority to make important decisions on your behalf if you become incapacitated. This person is called your agent, proxy, or attorney-in-fact.

Anyone can become ill or injured unexpectedly. By setting up a POA, you can plan ahead and ensure that someone you trust has the power to manage your affairs if you can't. Here's how to make someone your power of attorney.

1. Decide which type of power of attorney to make.

There are several types of POAs. Each covers different aspects of your life, and depending on your situation, you may want more than one. Here are a few types:

• Durable power of attorney. Having a durable POA means your agent’s authority to act on your behalf continues if you become incapacitated — for example, if you fell into a coma. If you’re creating your POA to prepare for a situation where you might not be able to make decisions on your own, you’ll likely want a durable POA.
• Springing power of attorney. A springing POA only gives your agent power to act when a specified condition is met — such as you becoming incapacitated. Once the condition is met, your agent’s power “springs” into effect. Most attorneys don’t recommend using springing POAs for estate planning purposes because it can be difficult to determine whether you’re incapacitated.
• General power of attorney. With a general POA, you authorize your agent to act for you in all situations allowed by your local law. This includes your legal, financial, health, and business matters.
• Financial power of attorney. A financial POA is considered a special or limited power of attorney, because it only gives your agent authority to make decisions about your money and property. This could include paying bills, making bank deposits, and filing your taxes.
• Medical power of attorney. A medical POA is another type of special or limited power of attorney. It allows your agent to make healthcare decisions on your behalf. This could include decisions about your medical treatments, medication, surgery, and more.

2. Choose your agent.

According to state law, your agent generally:

• Must be at least 18 years old (though some states require them to be older)
• Can’t be your healthcare provider (like your doctor)

When choosing an agent, it’s important to pick someone you trust to act in your best interests, can make tough decisions, and will respect your wishes—even if others disagree. It also helps if they live nearby. Depending on your situation or illness, your agent may need to be present for weeks or even months to help manage your affairs. Living close can make that much easier.

If you set up a general power of attorney, you’ll generally name one agent to have decision rights over all your affairs. If you make a separate financial POA and medical POA, you have the option of naming two different agents.

If you assign two different people to manage your financial affairs and healthcare decisions, consider choosing people who get along and work well together. There could be times when they need to work together to manage your affairs. For example, your financial agent may be responsible for paying medical or insurance bills for treatment chosen by your healthcare agent.

Before making and executing your POA, speak to the person (or people) you've chosen as your agent. Make sure they’re willing to take on the responsibility. Be open and honest about your wishes for your medical care and financial affairs, so they feel prepared making decisions for you when the time comes.

3. Decide how much authority to give your agent.

Once you’ve chosen your agent, the next step is deciding how much authority to give them over your affairs. What financial and medical decisions do you want them to make on your behalf? Some of these decisions could include:

• What medical care, treatments, and medications you receive
• Which doctors or healthcare providers treat you
• Where you receive your medical care (such as a specific hospital or facility)
• How to pay your healthcare bills (such as from a specific bank account)
• How your home and other property are managed while you're away
• Whether and how to invest your money in stocks, bonds, or other markets

4. Fill out a power of attorney form.

Once you know which type of POA you want, you should fill out the relevant form. You have a couple of options:

• Use your state’s POA form. Many states offer free, basic power of attorney forms. While convenient, these templates are typically very general and may not be easy to tailor to your specific needs or situation.
• Use an online template. Some companies offer power of attorney forms online. You fill in your information, then pay a fee to download your completed documents.
• Hire an attorney to draft your documents. While this option can be helpful — especially for complex situations — it can also be costly. And keep in mind that hiring a lawyer isn’t required to make a legal power of attorney.
• Use free online software. You can use a free provider, like FreeWill, to create a durable financial power of attorney or a living will (which includes a healthcare power of attorney). FreeWill’s power of attorney forms are valid in all 50 states and completely free.

5. Execute your POA according to the laws in your state.

In most states, you must sign your POA form in front of a notary. Some states also require additional witnesses or your agent’s signature. If you use FreeWill to create your power of attorney, we provide state-specific instructions for how to properly sign and witness your document.

6. Give a copy of your POA form to your agent and other interested parties.

For a medical power of attorney, interested parties could include your healthcare providers, medical office, and any family members who might be contacted in case of emergency (such as your spouse).

For a financial power of attorney, interested parties could include your bank, mortgage lender, credit card companies, insurance providers, utility companies, and any other institutions involved in managing your finances.

7. Keep your POA forms in a safe place.

You should store your POA with your other estate planning documents. This could be in a fireproof safe in your home, a safe deposit box, or at a trusted attorney’s office. Tell someone you trust where these documents are, so they can locate them in the event of an emergency.

8. Update your POA as your circumstances change.

There’s no way to change or “edit” a power of attorney. If you want to make changes, you should create a new POA document. Clearly state in your new document that you’re revoking the old one.

If you’re choosing a different agent, notify your original agent in writing to let them know you’ve revoked their authority. If it’s the same agent, provide them with a copy of your new POA and let them know what's changed.

You should also notify any third parties who had your original POA on file to let them know about the revocation and file your new POA.

None of us know what the future holds. With a power of attorney, you gain peace of mind by knowing that no matter what happens, your affairs will be handled by someone you trust.

If you're ready to get started, you can securely create your financial power of attorney or living will for free using FreeWill.