Power of attorney.

In plain English

A power of attorney (POA) is a document you sign to give another person legal authority to act for you. A financial POA covers money matters like paying bills, managing accounts, or selling property. A POA can be 'durable', meaning it stays in effect even if you become too sick or injured to make decisions yourself, which is the whole point for most people. The authority always ends when you die, at which point the executor of your will takes over. The rules for signing, witnessing, and using a POA are set by each state, so the document should follow your state's law and is usually drafted with a licensed attorney.

01Why it matters

Without a durable power of attorney, if you get seriously ill or hurt, your family may have to go to court to get permission to pay your bills or manage your accounts, which costs time and money during an already hard moment.

02The math, step by step

Before surgery, Devon signs a durable financial power of attorney naming his sister. While he is recovering and unable to handle things, she uses it to pay his mortgage and deposit his paycheck. Without that document, the bank would have refused to let her touch his accounts.

03What this is NOT

04Receipts

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