Understanding the boundaries of a power of attorney

On Behalf of Marcus, Gould & Sussman, LLP | Mar 13, 2026 | Estate Planning | A power of attorney (POA) gives someone else the legal authority to act on your behalf. But, how far does that authority really go? Understanding the limits of a POA is essential to protecting yourself, your assets and your loved ones. First, it’s important to distinguish between the types of POA. POAs are generally categorized by their scope of authority and durability. For instance, you can create a general POA granting your agent broad authority over your affairs or a limited POA that restricts them to specific tasks. You can also define when your agent can start acting on your behalf. Some POAs take effect immediately, allowing your agent to act in your capacity as soon as the document is signed. Others are ‘springing’, meaning they only take effect if certain conditions are met, such as incapacity. What a POA cannot do Despite its wide-ranging powers, a POA has clear boundaries. For example, your agent cannot change or revoke your will on your behalf. Additionally, they cannot make gifts unless the document explicitly permits. It’s also worth noting that a POA ends immediately after your passing. Protecting yourself and your interests Choosing a trustworthy agent is critical. You don’t want someone prone to making mistakes or mismanaging your affairs. It’s also prudent to include safeguards, such as requiring multiple signatures for certain transactions or limiting the agent to specific accounts. Regularly reviewing and updating your POA is equally essential to ensure it reflects your current wishes and financial situation. Professional legal guidance matters Navigating the nuances of a POA can be complicated. Legal requirements, including proper notarization and witness rules, must be followed for the document to hold up in court. Getting qualified legal assistance can help ensure your POA is enforceable and reflects your intentions while protecting you from potential abuse.