What Is a Power of Attorney (POA) and Why You Should Have One

Let’s face it—life throws curveballs. Illness, injury, aging, or even a last-minute trip overseas can leave you in a position where you need someone else to step in and handle things on your behalf. That’s where a Power of Attorney, or POA, comes into play.

It’s one of the most powerful and practical tools in your life planning toolkit. Yet too many people put it off—thinking it’s only for seniors, or for “someday.” At My Banyan Life, we believe preparing for life’s “what ifs” brings peace of mind—not just for you, but for your loved ones too.

Let’s explore what a Power of Attorney really is, why it matters, what kinds exist, and how you can organize this essential document in your Banyan branches.

What Is a Power of Attorney (POA)?

In simple terms, a Power of Attorney (POA) is a legal document that allows someone else to act on your behalf.

• The person giving the authority is called the principal.
• The person receiving the authority is the agent (sometimes called an "attorney-in-fact").

Your agent can step in to manage your finances, make medical decisions, or handle specific matters—depending on what your POA says.

This kind of document is essential if you:

• Are traveling or living overseas
• Have a health condition that could worsen
• Are planning for future aging needs
• Want someone to help manage your affairs now

Think of it as appointing a trusted backup—you stay in control, but if you ever can’t act for yourself, someone you trust is legally allowed to help.

The Different Types of Power of Attorney

There isn’t just one kind of POA. Each type serves a specific purpose. Here’s a breakdown of the most common types and how they work:

 1. General Power of Attorney

This gives your agent broad authority to act on your behalf in legal, financial, and business matters.

Typical uses include:

• Managing bank accounts
• Signing documents
• Selling or buying property
• Filing taxes

Important: A general POA usually ends if you become incapacitated—unless it’s specifically made durable.

 2. Durable Power of Attorney

A Durable POA is like a general POA, but it remains in effect even if you become mentally or physically incapacitated.

This is especially important for long-term planning or in case of serious illness or injury. It allows your agent to continue managing your affairs when you’re unable to make decisions.

Unless stated otherwise, many states now automatically assume a POA is durable.

 3. Limited or Special Power of Attorney

This POA gives your agent authority to perform only specific tasks or make decisions in a certain area.

Examples:

• Signing documents while you’re out of town
• Handling a single real estate transaction
• Managing one bank account

This type of POA is ideal for one-time or temporary needs.

 4. Medical Power of Attorney (Healthcare POA)

A Medical POA, also called a Healthcare Power of Attorney, authorizes someone to make healthcare decisions for you if you're unable to do so. 

Your agent can decide:

• What treatments you receive
• Which medications you take
• Which hospitals or doctors to use
• Whether to proceed with surgery
• How to manage end-of-life care

This is an essential document for anyone with a chronic condition, aging concerns, or just a desire to be prepared for the unexpected.

 5. Springing Power of Attorney

Unlike other POAs that go into effect immediately, a Springing POA only becomes active under a specific condition—usually when a doctor certifies that you’ve become incapacitated. It “springs” into action only when needed, offering peace of mind if you're concerned about handing over control too early.

 6. Healthcare Proxy vs. Medical POA

While often used interchangeably, a Healthcare Proxy is technically a distinct legal instrument in some states.

• It names someone to make medical decisions when you're unable to.
• It can be considered a “springing” POA, since it only becomes active under medical incapacity.
• It must clearly state the agent’s name, authority, and any limitations.

Regardless of the terminology used in your state, having something in place to guide your care if you're unable to speak for yourself is essential.

Does a Power of Attorney Have to Be Done by an Attorney?

No. You don’t need a lawyer to create a valid POA.

Most states allow you to:

• Use a state-specific form
• Sign it in front of a notary or two witnesses (requirements vary)
• Store it safely—and share it with your agent, doctors, or institutions as needed

That said, working with an attorney is wise if:

• You have a complex estate
• You have multiple properties or investments
• You want to avoid family disputes
• You’re unsure who to appoint as your agent

At My Banyan Life, we recommend checking with a legal professional—just to be sure your POA covers all your bases and complies with your state laws.

Does a POA Need to Be Filed with the State?

In most cases, no. A POA doesn’t have to be filed with the government to be valid. It’s a private agreement between you and your agent.

However:

• Some states or counties may require it to be filed if it's used to handle real estate.
• It must meet state-specific rules to be considered legally binding—especially around signing, witnessing, and notarization.

If you're moving to a new state, it’s smart to review and possibly update your POA to match local requirements. Thanks to the Full Faith and Credit Clause of the U.S. Constitution, most states honor documents created elsewhere—but it’s not always guaranteed.

Where to Keep Your Power of Attorney Documents

Having a POA is only helpful if people can find it when it’s needed.

Here’s what we suggest:

• Store a copy in the Legal or Estate Planning branch of your My Banyan Life account
• Give copies to your appointed agent, doctor (if medical), and family members
• Keep the original in a fireproof folder or safe, and upload a scanned version to My Banyan

You can even use My Banyan’s Inner Circle sharing feature to give trusted individuals access, so they’re never left guessing in an emergency.

Why You Should Have One—Today

Still not sure you need a POA? Here’s why having one is a gift to yourself and your loved ones:

You stay in control—by naming who you trust to act for you.

• It prevents family confusion or conflict during a crisis.
• It avoids court intervention or guardianship proceedings.
• It gives you peace of mind that someone has your back.

Life doesn’t come with guarantees. A Power of Attorney gives you a layer of protection and planning that’s hard to put a price on. 

At My Banyan Life, we believe that organizing your documents isn’t just about paperwork—it’s about protecting your legacy, your relationships, and your wishes. A Power of Attorney is one of the most important legal documents you can have in place, no matter your age or income level.

Use your My Banyan account to:

• Upload your POA documents securely
• Track who has copies and when they were signed
• Record any updates, renewals, or changes in agents
• Explore other related branches like Medical, Senior Life Plans, or End-of-Life Wishes

Start Planning Today

Don’t wait until something goes wrong. Log in to My Banyan Life and upload your Power of Attorney—or get started creating one with the help of our checklists, prompts, and secure document storage.

Planning for tomorrow begins with action today.

Disclaimer:

This article is for informational purposes only and does not constitute legal or professional advice. Laws regarding Power of Attorney vary by state and can change over time. We strongly recommend consulting with a qualified attorney or legal advisor to ensure your documents meet all legal requirements and reflect your personal wishes.