ABA Family Legal Guide

The Rights of Older Americans

A Right to Control Your Own Affairs

Durable Power of Attorney

What is a power of attorney?

A power of attorney is a written document in which you (the principal) grant certain authority to another person (the agent or attorney in fact) to act on your behalf. A power of attorney may be very specific, authorizing a person only to sell a car for you, for example. Or it can be very broad, allowing the agent to do almost anything on your behalf. Traditionally, powers of attorney were used to authorize a trusted family member, friend, or lawyer to act on your behalf in financial matters--the sale of real estate, the making of investments, and so on. When drafted to cover all financial matters, this authorization is called a general power of attorney. However, you should note that the Social Security Administration will not permit your agent to cash or deposit your Social Security check. To deal with this problem, you may want to designate a representative payee (discussed on page 640).