A power of attorney gives one or more persons the power to act on your behalf with regards to some or all of your financial matters. The power may be limited to a particular activity (e.g., signing on your behalf on the closing documents of a home) or general in its application, empowering the appointed person to act on your behalf in numerous situations. A "springing" power refers to a power of appointment that only becomes effective upon the occurrence of a specified event (e.g., a determination that you are unable to act for yourself). Alternatively, a "durable" power can be effective immediately, will stay in effect indefinitely, and can be used in any situation when you are not able to act for yourself.

The person named in the power of attorney to act on your behalf is referred to as an agent or an "attorney-in-fact." By executing a power of attorney, you permit the agent to take any action specifically permitted in the document. As the creator of the power, you may revoke the power of attorney at any time.

A power of attorney is an essential element of any estate plan. Having a power of attorney ensures that if you ever become unable to manage your personal or business affairs, a person whom you trust will be able to manage these affairs on your behalf without having to first obtain a court appointment. Having a power of attorney is also very convenient for frequent travelers, who may find it advantageous to have a representative who can handle their financial affairs while they are away from home.