---
title: "What Is Power of attorney? Home Care Glossary | HomeCare.com"
description: "A power of attorney (POA) is a legal document in which one person, the principal, names another person, the agent, to act for them. The agent may handle..."
url: https://homecare.preview.multisites.ai/glossary/power-of-attorney/
publisher: HomeCare.com
phone: 800-974-3458
start: https://care.homecare.com/?source=homecare.com
---

Legal and planning

# Power of attorney

A power of attorney (POA) is a legal document in which one person, the principal, names another person, the agent, to act for them. The agent may handle money, property or other matters. The document sets how much power the agent has. State law shapes the rules.

## Why it matters for your family

A POA lets a trusted adult child or spouse pay bills, deal with banks and manage property if the older person cannot. A person must sign it while able to understand it. After a diagnosis such as dementia, it can be too late. Families often make two mistakes. They think a POA covers medical choices, but those usually need a separate health care document. They also assume banks must accept any form, though a bank may ask for its own paperwork. An agent has a duty to act for the principal, not for themselves. Ask an elder law attorney to draft it, because state rules differ. This is general information, not legal advice.

Source: [consumerfinance.gov](https://www.consumerfinance.gov/ask-cfpb/what-is-a-power-of-attorney-poa-en-1149/)

[Read more: What is Elder Law and Do You Need an Elder Care Attorney?](https://homecare.preview.multisites.ai/paying-for-care/elder-law-attorney/)

## Related terms

-   [**Durable power of attorney**A durable power of attorney is a power of attorney that stays in effect if the person who signed it becomes incapacitated.](https://homecare.preview.multisites.ai/glossary/durable-power-of-attorney/)
-   [**Medical power of attorney**A medical power of attorney is a legal document that names someone to make health care decisions for you if you cannot.](https://homecare.preview.multisites.ai/glossary/medical-power-of-attorney/)
-   [**Healthcare proxy**A healthcare proxy is a person you name to make medical decisions for you if you cannot speak for yourself.](https://homecare.preview.multisites.ai/glossary/healthcare-proxy/)
-   [**Elder law attorney**An elder law attorney is a lawyer who focuses on legal issues of older adults.](https://homecare.preview.multisites.ai/glossary/elder-law-attorney/)
-   [**Guardianship**Guardianship is a legal process in which a state court finds a person incapacitated and appoints someone else to make decisions for them.](https://homecare.preview.multisites.ai/glossary/guardianship/)
-   [**Advance directive**An advance directive is a legal document that states your health care wishes in case you cannot decide for yourself.](https://homecare.preview.multisites.ai/glossary/advance-directive/)

[All glossary terms](https://homecare.preview.multisites.ai/glossary/)

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