Power of attorney and advance directives
Legal documents let someone choose who will act for them if they can't. This guide explains powers of attorney and advance directives in plain language.
Last reviewed October 27, 2026
General information only. This guide is not medical, legal or financial advice. Talk with a physician, and with an elder-law or financial professional where money or legal papers are involved, about your own situation.
Financial power of attorney
A financial power of attorney names someone, often called an agent, to handle money and property for another person. What the agent can do depends on the document and state law.
Advance directives for health care
An advance directive records a person's wishes about future medical treatment. Medicare describes two parts: a health care proxy, which names someone to make health decisions if the person can't, and a living will, which describes the treatments the person would or wouldn't want.
The agent's duties
A person acting for someone else must act in that person's interest. The Consumer Financial Protection Bureau's guides for people managing someone else's money explain duties like keeping money separate and keeping records.
- Act in the person's interest, not your own
- Keep the person's money separate from yours
- Keep good records of what you spend and why
Keeping documents current
Documents help only if people can find them. Keep copies where family can reach them, share them with the person's doctors, and review them after major life or health changes.
Frequently asked questions
Each state has its own forms and rules for these documents. An elder-law attorney, or a legal aid program, can explain what applies where the person lives.
Medicare Part B covers voluntary advance care planning as part of the yearly Wellness visit, and you pay nothing if the provider accepts assignment and it is part of that visit.
It is easier to plan while the person can still make and explain their own choices. Families often raise it after a health change, but it can be done at any time.
Sources
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