Understanding Powers of Attorney
Knowledge is the first step toward taking control. Learn what a POA is, what it means for you, and why you have every right to revoke one.
What Is a Power of Attorney?
A Power of Attorney (POA) is a legal document that gives another person the authority to act on your behalf. The person who grants the authority is called the principal — that’s you. The person who receives the authority is called the agent or attorney-in-fact.
Despite the name, an attorney-in-fact does not need to be a lawyer. It can be anyone you designate — a parent, relative, friend, or professional. When you sign a POA, you are legally authorizing that person to make decisions and take actions as if they were you.
Many young adults sign POAs at the request of their parents when they turn 18 or head off to college. While this is sometimes appropriate, it’s important to understand exactly what authority you’ve granted — and to know that you can take it back.
Types of Powers of Attorney
POAs come in several forms, each granting different levels of authority. Here are the most common types.
Healthcare POA
Authorizes your agent to make medical and healthcare decisions on your behalf, including treatment options, hospital admissions, and access to medical records.
Financial POA
Gives your agent the power to manage your financial affairs, including bank accounts, investments, tax filings, and financial transactions.
General POA
Grants broad authority over both financial and personal matters. This is one of the most sweeping forms and automatically ends if you become incapacitated.
Durable POA
Similar to a general POA, but remains in effect even if you become mentally incapacitated. This is the type most commonly used by parents of young adults.
Limited / Special POA
Restricts your agent’s authority to specific actions or a defined time period. For example, managing one bank account or handling a single real estate transaction.
What Signing a POA Actually Means
When you sign a power of attorney, you give your agent legal authority to act on your behalf. Depending on the type and scope of the POA, your agent may be able to:
Why Some POAs Are Problematic
Many young adults have valid reasons for revoking a POA.
- 1 You didn’t fully understand the scope of what you were signing. Many 18-year-olds sign documents handed to them by their parents without realizing the breadth of authority they’re granting.
- 2 You felt pressured or coerced into signing. Whether explicitly or through family dynamics, you may not have felt like you had a real choice.
- 3 The POA is broader than appropriate. A general or durable POA may grant far more authority than what was actually needed for the stated purpose.
- 4 Your circumstances have changed. You may have been a minor or newly turned 18 when you signed, and your life situation is different now.
- 5 You’re a legal adult and you simply want to manage your own affairs. That is reason enough.
Your Right to Revoke
You have the absolute legal right to revoke any power of attorney you’ve granted.
Under the law, any mentally competent adult who granted a power of attorney can revoke it at any time, for any reason — or for no reason at all.
You do not need your agent’s permission. You do not need your parents’ approval. You do not need to justify your decision to anyone.
The power of attorney exists because you granted it. And you have every right to take it back.