When planning for the future, establishing a power of attorney (POA) is a critical step to ensure your affairs are managed according to your wishes if you become unable to make decisions yourself due to disability or incapacity. Two common types of POAs are the General Durable Power of Attorney and the Health Care Power of Attorney. Understanding the differences between these two can help you make informed decisions and ensure comprehensive planning. In this article, we’ll explore what financial and medical powers of attorney are, their key differences, and why you need both.

A Power of Attorney is a legal power or right, designated in a document that is created by a person who wants another person to take over some of his or her legal decision-making. The words “Power of Attorney” refer to both the legal power and the document that creates that power. The person who gives the power is the “Principal”, and the person who receives that power and who can exercise that power on the Principal’s behalf is called the “Attorney-in-Fact”.