A power of attorney can allow you to appoint a person of your choice to make decisions for you in the event you become incapacitated. However, these matters should not be taken lightly. There are many questions to consider when creating a power attorney, from who you should name as your agent to the powers you should grant them. If you’re wondering how to use a power of attorney, the following are several key questions to keep in mind:

1. What Type of Power of Attorney Do I Need?

One of the first questions you may have when considering how to use a power of attorney is, “what type of power of attorney do I need?” Powers of attorney can give an agent of your choice the authority to make financial decisions or medical decisions on your behalf in the event you are unable to make these decisions for yourself. However, it’s critical to be aware that these are two separate documents, which each grant your agent with specific powers. Although different situations may require different types of powers of attorney, it’s generally best to have both documents in place in the event the unexpected arises.

2. Who Can Be a Power of Attorney for Me?

Carefully consider the question, “who can act for me?” Since this person will be making crucial decisions for you, it’s vital to select an individual you trust to act in accordance with your wishes. You should also consider your potential agent’s willingness and capability to serve in the role. Since they need to be able to handle your affairs when necessary, it’s important to choose someone who is in close geographic proximity to you or has the ability to make decisions from a distance.

3. Do I Want to Appoint More Than One Agent?

You can appoint the same person to act as your financial power of attorney and your healthcare agent, or you may appoint different individuals for each role. In some cases, you might consider appointing co-agents for each type of power of attorney. While you might want to be fair to everyone involved, choosing more than one agent for the same power of attorney can sometimes lead to complications. Significantly, if your co-agents are not able to cooperate, it can slow down decision-making and other important matters.

4. What Do I Want to Authorize My Agent to Do?

When it comes to how to use a power of attorney, you can give your agent broad powers or limit their authority to only make specific decisions. For instance, a healthcare power of attorney can allow your agent to make decisions about your medical treatment, long-term care, end-of-life matters, medication, and the facilities where you will receive medical care. You may also include specific instructions for them to follow in a healthcare directive.

A financial power of attorney can give your agent the authority to handle one specific financial transaction, or the power to manage all of your financial matters, or anything in-between. Specifically, this document can authorize your agent to:

• Make investments
• Mange your property
• Access your bank accounts
• Handle your taxes
• Conduct real estate transactions
• Operate businesses you own
• Handle lawsuits and legal matters
• Write checks
• Enter into contracts

Notably, you cannot use a power of attorney to give your agent voting powers or the authority to create a will for you.

5. How Long Do I Want My Power of Attorney to Be Effective?

When considering how to use a power of attorney, it’s essential to ask yourself, “how long do I want my power of attorney to be effective?” A healthcare or financial power of attorney can be “durable,” and go into effect immediately upon signing the document, or it can be “springing” and take effect upon the occurrence of a specific event. It can grant authority to your agent for a limited amount of time, or last your entire lifetime. You can also revoke a power of attorney at any time while you are still competent.

Contact an Experienced Minnesota Estate Planning Attorney

If you are thinking about creating a plan for incapacity and have questions about how to use a power of attorney, an experienced estate planning attorney can best advise you. At The Law Shop Minnesota, we work with individuals and their families on a wide range of estate planning matters. Providing personalized time and attention, we strive to ensure that each client has the peace of mind they need that their wishes will be carried out.

Contact us by phone at (651) 344-6100 or online to schedule a meeting at either our St. Paul or Edina offices. You can also connect with us virtually from anywhere in greater Minnesota through a Zoom consultation for convenient and accessible legal support.

Louise Livesay and Peter Ladwein share a commitment to helping families find peaceful, practical solutions during difficult times. Together, they bring compassion, experience, and a personal touch to every case they handle.

With more than twenty years of experience, Louise has guided countless families in the Twin Cities and across Minnesota toward out-of-court resolutions through collaborative divorce, mediation, and other flexible, client-centered options. Peter shares that same dedication to protecting families and their futures. Having firsthand experience with a special needs family member, he brings a deep understanding and empathy to his work. Licensed in both Minnesota and Illinois, Peter helps clients navigate the legal process with care and clarity.

Louise and Peter work together to ensure every client feels supported, informed, and confident in moving forward toward a positive resolution.