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Most of us don’t like to think about a time when we might not be able to manage our own finances or make decisions about our health. But the reality is, unexpected illness, injury, or even just the effects of aging can make it difficult—or impossible—to handle important matters ourselves.
That’s where a power of attorney (POA) comes in.
A POA is one of the most important legal documents you can have in place as part of your estate plan. It lets you name someone you trust to step in and manage your affairs if you can’t do it yourself. Without this kind of document, your family may have to go to court to gain legal authority over your finances or medical care, which can be time-consuming, expensive, and emotionally draining.
In this post, we’ll walk through what powers of attorney are, how they work, the different types, and what you should keep in mind when creating one—especially if you live in Rhode Island or Massachusetts.
What Is a Power of Attorney?
A power of attorney is a legal document that allows you (the “principal”) to appoint another person (called your “agent” or “attorney-in-fact”) to act on your behalf. This authority can be broad or narrow, temporary or long-term.
Most people use a power of attorney to prepare for a situation where they become incapacitated—meaning they can’t make decisions for themselves due to illness, injury, or cognitive decline. But powers of attorney can also be used for short-term purposes, like if you’re traveling abroad or recovering from surgery and need someone to handle things temporarily.
Types of Power of Attorney
There are several types of POAs, each with a specific purpose:
Durable Power of Attorney (Financial)
This gives your agent the authority to manage your financial affairs and remains valid if you become incapacitated. This is the type most commonly used in long-term estate planning.
A durable financial POA can cover tasks like:
- Paying bills and managing bank accounts
- Handling investments
- Buying or selling property
- Filing taxes
- Managing business matters
In Rhode Island and Massachusetts, a POA is only considered “durable” if it includes specific language stating that it remains effective even if you become disabled.
Health Care Power of Attorney (Health Care Proxy)
This document allows you to name someone to make medical decisions on your behalf if you are unable to do so. It typically works in tandem with an advance directive or living will, which outlines your specific medical preferences (like resuscitation or life support).
Each state has its own form for this. For example, Massachusetts uses a Health Care Proxy form, while Rhode Island refers to it as a Durable Power of Attorney for Health Care.
Choosing the Right Agent
The person you name as your agent should be someone you trust completely. This person may need to make major decisions on your behalf—decisions about your finances, your health, even your living arrangements.
Here are a few qualities to consider:
- Trustworthiness – Can they be counted on to act in your best interest?
- Competence – Do they understand financial matters, or are they willing to seek help if needed?
- Availability – Are they nearby, or able to step in quickly if needed?
- Willingness – Have they agreed to take on this responsibility?
You may also want to consider appointing two people to act together, or one person as the primary agent and another as a successor or backup. This can provide added security and continuity if your first choice is unable or unwilling to serve when the time comes.
Giving Your Agent What They Need
A POA only works well if your agent has the right information. That means you should share:
- Where to find your POA document (and give them a copy)
- A list of your financial accounts and institutions
- Details about insurance policies, debts, and investments
- Contact info for your attorney, accountant, or financial advisor
- Your wishes for how your affairs should be handled
This is especially important in medical situations. Your health care agent should know what kind of care you want—and what you don’t.
Consider Naming a Backup
Even the best plans can run into roadblocks. Your agent may move away, have a change in their health, or simply no longer be available when needed.
That’s why it’s a good idea to name a successor agent—someone who can step in if your first choice can’t serve. If you don’t name a successor and your primary agent can’t act, your family may have to ask the court to appoint a guardian or conservator.
Why You Should Work with an Attorney
It’s possible to find POA forms online, but estate planning is not one-size-fits-all. A form might not reflect your unique needs or comply with Rhode Island or Massachusetts law.
For example:
- In Rhode Island, your POA must include clear durable language or it ends if you become incapacitated.
- In Massachusetts, health care proxies must meet state-specific requirements.
- Both states may have different witness or notarization rules, and some banks won’t accept outdated or generic POA forms.
An experienced estate planning attorney can help you:
- Choose the right type of POA
- Ensure your documents comply with state law
- Draft custom language to meet your goals
- Avoid common pitfalls that cause documents to be rejected
Most importantly, they can help you revisit and update your POA over time as your life changes.
Frequently Asked Questions
Is a power of attorney the same as a will or trust?
No. A POA gives someone the ability to act on your behalf while you’re still alive. A will only takes effect after you pass away. A trust can span both life and death but is typically used to manage and distribute assets, not to appoint someone to make decisions in emergencies.
Can I revoke a power of attorney?
Yes. As long as you are mentally competent, you can revoke or change your POA at any time. You’ll need to do this in writing and notify your agent and any institutions involved.
Does a POA give someone control over everything?
Not necessarily. You can limit your agent’s authority to certain tasks or situations. A well-drafted POA will reflect exactly what you want your agent to handle—and what you don’t.
Do I still need a POA if I’m married?
Yes. Being married doesn’t automatically give your spouse legal authority over all your finances or medical decisions. Having a POA ensures there’s no confusion, delay, or legal barrier in a crisis.
Final Thoughts
A power of attorney might not sound urgent—but it’s one of the most important documents in your estate plan. It protects you, your family, and your finances if something unexpected happens. And it can save your loved ones from stressful court proceedings when they’re already dealing with enough.
If you haven’t created a power of attorney yet, or if you have one but aren’t sure it still fits your life, now is a good time to revisit it.
At Lambros Law Office, we help individuals and families in Rhode Island and Massachusetts prepare powers of attorney that work—when and how they’re needed most.
Reach out today to get started.