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Estate Planning Glossary

Power of Attorney

A legal document authorizing a trusted person to make financial or legal decisions on your behalf if you become unable to do so.

Plain English

A power of attorney names someone to manage your finances if you're incapacitated — not dead, just unable to act for yourself. Think accident, surgery, illness. A durable POA stays in effect even if you're incapacitated. A regular POA expires when you become incapacitated — which defeats the purpose. Always choose durable.

Why it matters

Without a durable POA, your family may need to go to court to get authority to pay your bills, access your accounts, or manage your affairs. That process is called conservatorship — it's slow, expensive, and public.

First Light generates a durable power of attorney for $29 as part of the complete estate bundle.

Related terms

Healthcare DirectiveExecutor

Common questions

A regular power of attorney expires if you become mentally incapacitated. A durable power of attorney specifically stays in effect during incapacity — which is when you actually need it. Always use a durable power of attorney for estate planning purposes.

Choose someone you trust completely with your finances — a spouse, adult child, or close friend. They will have broad authority over your accounts and assets. Name a backup in case your first choice is unavailable.

Yes. A power of attorney is only valid while you are alive. After death, your executor takes over through the authority granted in your will.

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