Power of Attorney: An Important Tool for Caregivers and Loved Ones

November is National Caregiver Month—a time to acknowledge the dedication of caregivers and provide them with the tools and resources needed to support their loved ones. One important document that can make caregiving easier and ensure peace of mind is a Power of Attorney (POA).

A Power of Attorney is a legal document that authorizes someone you choose—known as an “agent” or “attorney-in-fact”—to act on your behalf. This person has a fiduciary duty, meaning they must always act in your best interest. POAs are especially helpful in situations where someone becomes ill, faces mobility challenges or simply needs assistance managing key aspects of life.

There are two types of POAs:

• Financial: Allows your agent to handle financial and legal matters, such as paying bills, managing bank accounts or signing documents.
• Healthcare (Health Care Proxy): Allows your agent to make medical decisions for you if you are unable to do so.

Some people choose one individual to serve in both roles, while others appoint different people depending on strengths and comfort levels.

Four Main POA Categories

Not all POAs function the same way. Depending on your needs, you can choose from four common types:

• Limited POA: Grants authority for a specific task or time period, such as signing documents while you are traveling.
• General POA: Allows broad decision-making authority but becomes invalid if you become incapacitated.
• Durable POA: Remains valid even if you become incapacitated, which makes it a strong option for long-term planning.
• Springing POA: Takes effect only after a specific event occurs, such as a medical determination of incapacity.

Choosing the Right Agent

Selecting the right person is a thoughtful decision. Ask yourself:

• Do I trust this person to act in my best interest?
• Is this individual responsible, communicative and level-headed?
• Am I comfortable sharing financial and personal information with this person?

Your agent should be someone who is capable, available and willing to carry out your wishes.

How to Set Up a Power of Attorney

To create a POA that meets New Hampshire’s legal requirements, consult with an attorney. For referrals, visit the New Hampshire Bar Association’s Lawyer Referral Service. Once established, review your document periodically to ensure it remains current and aligned with your wishes.

Planning ahead not only protects your interests—it provides confidence and clarity for the people who care for you most.

Source: American Bankers Association