If someone named you their Power of Attorney — or you’re about to sign one — the first question is almost always the same: what does this actually let me do? The honest answer is “a lot, but not everything,” and knowing the difference is what keeps you out of trouble.
First, the vocabulary
A Power of Attorney is a legal document. The person who signs it (giving away the authority) is the principal. The person who receives the authority — you — is the agent, sometimes called the attorney-in-fact. You don’t have to be a lawyer to be an attorney-in-fact; the word just means “someone acting on another’s behalf.”
What an agent generally can do
The document itself defines your powers, but a broad financial Power of Attorney commonly lets you:
- Pay the principal’s bills and manage their bank accounts
- Handle real estate, insurance, and taxes
- Manage investments and retirement accounts
- Apply for benefits like Medicaid or VA aid on their behalf
A healthcare Power of Attorney (a separate document in most states) lets you make medical decisions when the principal can’t — choosing providers, consenting to or declining treatment, and accessing medical records.
What an agent can’t do
This is the part people miss. Even a “broad” Power of Attorney has hard limits. As a rule, you generally cannot:
- Change the principal’s will
- Vote in an election for them
- Act after the principal dies (a Power of Attorney ends at death — the executor takes over)
- Use their money for your own benefit
That last one is the big one. Everything you do must be for the principal, not for you. That’s called your fiduciary duty, and it’s the standard a court will hold you to if anyone ever questions a decision.
“Durable,” “springing,” and when your authority starts
A durable Power of Attorney stays in effect even after the principal becomes incapacitated — which is usually the whole point for caregiving. A springing Power of Attorney only “springs” into effect once a specific condition is met, often a doctor’s finding of incapacity. Read your document closely: whether it’s durable, and when it takes effect, changes everything about what you can do today.
Protect yourself while you act
The agents who sleep well at night are the ones who keep records. Keep the principal’s money separate from yours, save receipts, and write down the reasoning behind big decisions. If you’d be uncomfortable explaining a choice to a judge or a sibling, that’s your signal to slow down and document it.
If you want the full picture — how to read your document, the step-by-step duties, and where to find your state’s official forms — that’s what the National Handbook and your state’s page are for. And if you want to go deeper, the POA Caregiver Program walks through the whole role start to finish.
This article is plain-English education, not legal advice. Power of Attorney law varies by state, and reading it does not create an attorney–client relationship. For guidance on your specific situation, talk with a licensed attorney in your state.