What Powers Should Your POA Include?
June 4, 2025
A power of attorney (POA) is one of the most important legal documents you can create, giving someone authority to act on your behalf in financial, legal, and medical matters. The powers granted in a POA can vary widely, and selecting the right ones is critical.
The Law Office of Geoffrey Fong in Rocklin, California, helps clients draft POAs tailored to their needs and circumstances.
Whether you're preparing for long-term care, managing property, or protecting business interests, the right POA can make sure that your affairs are handled according to your wishes, even if you’re unable to manage them yourself.
Financial Management Authority
When creating a power of attorney (POA), it's important to grant your agent authority over your financial affairs. This enables them to manage bank accounts, pay bills, handle investments, and buy or sell property as needed. Without these powers, your agent may be unable to act on your behalf during emergencies or periods of incapacity.
For individuals who may face financial challenges or sudden changes in health, having these powers in place provides clarity and helps make sure your financial affairs continue to run smoothly. Powers to consider for financial management include:
Bank account access: This allows the agent to manage personal or business bank accounts, pay bills, and make necessary deposits or withdrawals.
Investment management: This empowers the agent to buy or sell stocks, bonds, and mutual funds in your portfolio, as well as manage retirement accounts.
Real estate transactions: This enables the agent to sell, buy, or lease property on your behalf. This is essential if you own multiple properties or require property management services.
Debt and loan management: This authorizes the agent to handle existing debts, such as mortgages or loans, so payments remain on time and late fees are avoided.
Tax filing and payments: This grants the agent the power to file your tax returns and handle any necessary communications with the IRS.
Including these powers makes sure that your financial obligations are met and that your agent has the necessary authority to manage your assets without complications.
Medical and Healthcare Decisions
A power of attorney that addresses healthcare and medical decisions allows your agent to make important choices on your behalf if you’re unable to do so. This includes authorizing medical treatments, choosing healthcare providers, and even deciding on end-of-life care options.
Individuals should carefully consider which healthcare-related powers to include, as these decisions can significantly impact long-term well-being and quality of life. These powers not only allow your agent to handle medical emergencies but also give them access to your health information to make informed decisions.
Property and Real Estate Transactions
Managing property and real estate can be challenging, especially when the owner becomes incapacitated. A POA should include powers that allow your agent to handle property transactions, including buying, selling, or renting real estate. This can be particularly crucial if you own multiple properties.
Clear property management powers can help your agent take swift action if needed, such as selling a home or renting out a property to generate income. Without these powers, your agent may not be able to act on your behalf in matters that require quick decision-making.
Consider including powers related to property and real estate transactions, such as:
Real estate sales: This allows your agent to sell your property, helping keep it properly managed and allowing any necessary legal actions to be taken.
Property leasing: This authorizes your agent to lease or rent your property to tenants, providing income and managing property needs.
Mortgage management: This grants your agent the ability to handle mortgage payments, renegotiate terms, or secure new loans.
Property tax management: This authorizes the agent to handle property tax payments and resolve any issues with local tax authorities.
Property maintenance decisions: This enables your agent to make decisions regarding repairs, maintenance, and improvements to preserve the property’s value.
With these powers in place, your agent can make sure that your property is well-managed and protected even when you’re unable to make decisions yourself.
Business Operations and Interests
If you own a business, you should consider granting your agent authority over your business operations. This allows them to manage day-to-day activities, make strategic decisions, and handle legal or financial matters related to the business.
Without this authority, your business could face significant disruptions if you become unable to make decisions. Powers related to business operations may include:
Operating the business: This grants your agent the authority to manage daily operations, make decisions, and oversee employees.
Signing contracts: This allows your agent to enter into contracts or agreements on behalf of your business.
Tax filings and obligations: This authorizes your agent to handle tax filings, payroll, and any related legal obligations to keep your business compliant.
Partnership decisions: This provides your agent with the authority to make decisions regarding business partnerships or shareholding interests.
Business dissolution: This empowers your agent to handle the sale or dissolution of the business if necessary.
Including these powers will allow your business to continue running efficiently, avoiding disruptions and legal issues during times when you can't oversee it yourself.
Digital Assets and Online Accounts
Given the growing reliance on technology, it’s essential to include powers for managing digital assets and online accounts in your power of attorney. This can include email, social media accounts, online banking, and investment portfolios. Without these powers, your agent may not be able to access critical accounts.
It’s important to consider how digital assets can be managed in a POA, especially as digital platforms continue to play a central role in financial and personal management. With appropriate powers in place, your agent can step in and handle online accounts as needed.
Retirement and Insurance Decisions
Retirement accounts and insurance policies are vital aspects of financial planning, and your POA should cover their management. Granting your agent authority over retirement accounts, life insurance, and health policies assures these resources are managed correctly if you become unable to do so.
Empowering your agent with the ability to make decisions about retirement savings, policy beneficiaries, and insurance coverage helps protect your financial future and allows any necessary changes to be made efficiently. Some retirement and insurance powers to consider are:
Retirement account management: This allows the agent to manage contributions, withdrawals, and account beneficiary designations for accounts like 401(k)s or IRAs.
Life insurance policy management: This grants the agent authority to update beneficiaries, adjust coverage, or make claims on your behalf.
Health insurance decisions: This empowers your agent to manage your health insurance, including selecting plans, handling premiums, and negotiating coverage.
Long-term care insurance: This allows the agent to manage or activate long-term care insurance if the need arises.
Annuity management: This grants the agent the authority to manage annuities, including withdrawals or policy changes.
These powers help keep your retirement and insurance needs continuously managed, even in your absence. If you're uncertain about how to address these crucial aspects in your POA, consult with Attorney Geoffrey Fong to receive professional guidance.
Contact a Power of Attorney Lawyer Today
Choosing the right powers to include in your power of attorney helps safeguard your wishes and allows your affairs to be managed smoothly in times of incapacity. The Law Office of Geoffrey Fong proudly serves clients in Rocklin, Roseville, Folsom, and Citrus Heights. Reach out today to schedule a consultation and take steps to protect your future.