# Power of attorney

Canonical URL: https://olomon.com/financial-glossary/power-of-attorney
Markdown twin: https://olomon.com/financial-glossary/power-of-attorney/llms.txt
Category: Estate & Legacy Planning (https://olomon.com/financial-glossary/categories/estate-legacy-planning)
Also known as: POA, Attorney-in-fact
Last updated: 2026-04-18

## Definition

A power of attorney (POA) is a legal document granting one person — the agent or attorney-in-fact — the authority to act on another person's behalf. POAs can be financial or medical, durable (effective even at incapacity), or springing (triggered by incapacity), and the principal can limit the agent's powers in scope and duration.

## Key takeaways

- Durable POAs remain effective if the principal becomes incapacitated.
- Springing POAs only take effect upon a defined event (typically certified incapacity).
- Medical POAs (healthcare proxies) handle health decisions; financial POAs handle money matters — most households need both.
- A POA ends at the principal's death — from that point, executors and trustees take over.

## How Olomon thinks about this

_The following section is Olomon's first-party perspective, informed by our work building a financial system of record. It is intentionally separated from the neutral definitional content above._

Olomon stores the executed POA alongside the assets it can affect and lets you see, at a glance, who has authority for what. If a POA is updated or revoked, the record is updated in one place — not scattered across institutions.

## In-depth definition

POAs are among the most powerful documents in personal finance: a properly drafted financial POA can move money, sign tax returns, manage real estate, and execute investment decisions. Choose your agent with the same care you'd choose a [successor trustee](https://olomon.com/financial-glossary/successor-trustee) or [executor](https://olomon.com/financial-glossary/executor) — and revisit the choice when relationships change.

## Frequently asked questions

### Can I revoke a power of attorney?

Yes — as long as you have legal capacity, you can revoke a POA in writing at any time. Best practice is to notify the agent and any institution that has been relying on the original POA.

## Sources

1. [Managing Someone Else's Money: Power of Attorney Guides](https://www.consumerfinance.gov/consumer-tools/managing-someone-elses-money/power-of-attorney-guides/) — Consumer Financial Protection Bureau. Cited for: Federal POA agent guidance.

## Related terms

- [Medical directive](https://olomon.com/financial-glossary/medical-directive)
- [Fiduciary](https://olomon.com/financial-glossary/fiduciary)
- [Estate plan](https://olomon.com/financial-glossary/estate-plan)
- [Legacy contact](https://olomon.com/financial-glossary/legacy-contact)

## Cite this page

Olomon Editorial Team. (2026). Power of attorney. Olomon Financial Glossary. https://olomon.com/financial-glossary/power-of-attorney

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