What does a power of attorney do?

Updated 2026-10-16 · Expert review in progress

The short answer

A power of attorney is a signed document that lets someone you choose, called your agent, act for you. Depending on what it says, they can pay bills, manage accounts and property, or speak with doctors. They must follow your wishes and act only within the authority you wrote down, and their authority ends at your death.

Most people picture a power of attorney as a form you sign at a lawyer's office and then forget. In practice, it's the paper that lets someone handle your life's small jobs when you can't: the electric bill, the bank call, the conversation with a nurse.

So what does a power of attorney do, exactly? It's one of the four roles in every estate plan, and this page covers what it allows, what it doesn't, and why the wording matters more than most people expect.

What a power of attorney is

A power of attorney is a written document. You, the principal, give another person authority to act in your place. That person is called your agent (some documents say "attorney-in-fact"). They don't need to be a lawyer.

Washington's definition is a good example. Under RCW 11.125.020, a power of attorney is a writing that uses the term "power of attorney" and grants authority to an agent to act in your place. Other states word it differently, but the idea is the same.

There are two broad kinds:

A financial power of attorney covers money and property.
A medical power of attorney covers health care decisions.

In Washington, a single power of attorney can include health care decisions, but only if it expressly grants that authority, under RCW 11.125.240.

What can a power of attorney do?

It depends entirely on what the document says. A broad document can let your agent do nearly anything you could do with your property. A narrow one might cover a single task, such as selling a car.

Washington's law lists subjects a document can grant, sections RCW 11.125.270 through 11.125.410. Here are the ones that matter most to everyday life:

Subject	What the agent can typically do
Banks and financial institutions	Open, use and close accounts, write checks, deposit what you're owed
Real property	Buy, sell, lease or maintain your home and other real estate
Stocks, bonds and investments	Buy, sell and manage investment accounts
Retirement plans	Manage accounts like IRAs and employer plans
Taxes	Prepare, sign and file your tax returns
Personal and family maintenance	Keep up your usual standard of living: rent, groceries, care, the vet
Government benefits	Deal with programs such as Medicare and Medicaid
Health care	Speak with doctors and make medical decisions, if expressly granted

In real life, it looks small. Your agent pays the property tax on time. They call the pharmacy, move money to cover a care bill, and make sure the dog walker gets paid while you're recovering.

What can't a power of attorney do?

This is the part people often miss. An agent's authority has firm edges, and the law draws them to protect you.

It ends at death. In Washington, a power of attorney terminates when the principal dies, under RCW 11.125.100. After that, your executor takes over through the will.
It may end at incapacity. In Washington, a power of attorney stops when you become incapacitated unless it contains words saying it should continue, under RCW 11.125.040. That continuing quality is called "durable."
It doesn't override you. While you can manage your own affairs, you can revoke the document or the agent's authority, under RCW 11.125.100.
Your agent can only act within what you granted. That duty applies no matter what else the document says, under RCW 11.125.140.
Some powers must be spelled out. In Washington, an agent can make gifts, change beneficiary designations, change rights of survivorship, or create or change a trust only if the document expressly says so (RCW 11.125.240).
Social Security is separate. The Congressional Research Service explains that a power of attorney doesn't by itself let someone manage Social Security or SSI payments. The agent also has to be appointed by Social Security as a representative payee.

That last point catches families off guard. Plan for it alongside the document, not after.

What does an agent owe you?

Your agent is a fiduciary: legally required to act in your interest and follow what you wrote. It's a legal duty, not a favor.

Washington sets out the duties in RCW 11.125.140. Whatever the document says, an agent who has accepted the role must act in good faith, stay within their authority, and follow your reasonable expectations as far as they know them.

Unless the document says otherwise, they must also:

act loyally for your benefit
avoid conflicts of interest
act with care, competence and diligence
keep a record of every receipt, payment and transaction
cooperate with your medical decision maker
try to preserve your estate plan, where that's in your best interest

An agent who breaks these rules can be held responsible for restoring what was lost, under RCW 11.125.170.

When does it start working?

In Washington, a power of attorney is effective when you sign it unless it says it starts later, under RCW 11.125.090. One that starts later, often at incapacity, is called a springing power of attorney.

A springing document needs someone to confirm the trigger. If you haven't named that person, Washington requires a written finding by a physician or licensed psychologist who has examined you, or by a judge or appropriate official. The page on when a power of attorney takes effect covers the practical side.

Why the wording matters so much

Two documents can both say "power of attorney" at the top and work very differently. Here is a quick check to run on yours.

Question	Why it matters
Does it say it continues if I become incapacitated?	In Washington, without that wording it stops when it's most needed
Does it start now or later?	A later start can mean delays while incapacity is confirmed
Does it cover health care, or only money?	Medical authority must be expressly granted in Washington
Does it allow gifts or beneficiary changes?	These need express wording, and you may or may not want them
Does it name a backup agent?	A successor can step in if your first choice can't
Was it signed the way my state requires?	Banks may question a document that wasn't

Washington allows you to name successor agents, who step in if your first agent resigns, dies or can't serve, under RCW 11.125.110. It's worth doing. The page on naming a backup in every role explains why.

What happens if you don't have one?

If you can't manage your affairs and nobody holds authority, a family member or friend may have to go to court. The court can appoint a guardian or conservator to act for you. The page comparing guardianship and a power of attorney walks through the difference.

A power of attorney lets you choose instead. You pick the person, and you set the limits.

If your obvious choice lives far away or is your own age, that's common. Some people name a friend, and others name a professional as backup. The series on who decides when you can't looks at those options. Kinly, for example, includes a financial and a medical power of attorney written for your state, with a trust company that can be named first or as backup.

Common questions

Does a power of attorney let someone take my money?

No. Your agent must act in your interest, within the authority you gave, and keep records. In Washington, gifts and beneficiary changes need express permission in the document, and an agent who misuses money can be required to repay it.

Does a power of attorney work after I die?

No. In Washington, a power of attorney ends at the principal's death. After that, your executor, called a personal representative in Washington, settles your estate under your will.

Do I lose control of my own money if I sign one?

No. You can still act for yourself. In Washington, you can also revoke the power of attorney or your agent's authority, and signing a new one doesn't cancel an older one unless the new document says so.

Is a power of attorney the same in every state?

No. Each state sets its own rules for signing, wording and what's allowed. Washington, for example, requires durability wording for the document to keep working after incapacity. Idaho's law takes the opposite approach.

Can my agent make medical decisions?

Only if your document grants that authority. In Washington, health care decisions must be expressly granted in the power of attorney. Many people use a separate medical power of attorney for this.

Sources

This page is general information, not legal or financial advice. Laws vary by state.

Keep reading

The four rolesFinancial power of attorney: what it covers and when it startsA financial power of attorney lets someone you choose pay bills and manage accounts. What it covers, what needs special wording, and when it starts.The four rolesWhat is a durable power of attorney?What is a durable power of attorney? One that keeps working if you can't manage your affairs. Why the wording matters, with Washington's rule.The four rolesThe four roles in an estate plan, and who should fill themWho should I name as power of attorney, executor and trustee? A plain guide to the four roles in every estate plan and how to choose who fills each.The next-of-kin gapWho decides for you when you can't? The next-of-kin gapWho is my next of kin, and who decides for me if I can't? How the law picks medical decision makers, heirs and executors, and how to close the gap.