Power of Attorney: Do It Now

Jul 22, 2026

If you’re like most adults, you know you “should” organize your financial affairs (aka “make an estate plan”) — but you probably haven’t. Good news: there’s one practical, important step you can put on your to-do list this week, and actually finish. Appoint a power of attorney. Read on to understand what a power of attorney (POA) is, and how to put one in place so you can check if off your to do list in real time, (and make life easier for yourself and your loved ones too).

What Is a Power of Attorney and Why Is It So Important?

Suze Orman, the widely known and trusted money guru, author, podcast host and Co-Founder of SecureSave, points out that the greatest gift we can give adult children is putting four must have documents in place, which are: a Will, Revocable Living Trust, Financial Power of Attorney, and a Durable Power of Attorney for Health Care with an Advance Directive. Together, these four legal documents comprise a complete estate plan.

Because it designates someone to help us while we are still alive, a power of attorney is a very useful and pragmatic first step toward a more complete plan. Specifically, as Orman explains, a power of attorney “is the document that will allow the person appointed to step in and handle your financial accounts”:

When you create it today, you are making life so much easier for your daughter or any caregiver. And please don’t tell yourself you have time to do this sometime in the future. Procrastination is not how you take care of your loved ones today. This may not be the most fun chore on your plate, but my goodness, once you check it off your to-do list, you will be so relieved. And though you and I both hope it never comes to this, there may come a day in the future when an adult daughter (or son) will be so grateful you set this up.

In plain terms: a power of attorney (POA) is a legal document where you name someone you trust — your “agent” — to handle financial matters on your behalf. You’re the “principal.” The document spells out exactly what your agent can do: pay your bills, manage your bank accounts, handle investments, deal with real estate, or whatever combination of powers you choose to grant.

Why does this matter now, not “eventually”? Because a POA only works if it’s already in place before you need it. If you experience an unexpected capacity decline — from an accident, an illness, or simply the realities of aging — or find yourself in an emergency where you can’t act on your own behalf, your designated agent can step in and access your accounts, pay your bills, and keep your financial life running. Without one, your family may have to petition a court for guardianship just to pay your mortgage or access your funds — a process that’s slower, more expensive, and more stressful than most people realize, at the exact moment they can least afford any of those things.

How to Actually Put a Power of Attorney in Place

Once you’ve decided to stop putting this off, the process itself is more straightforward than most people expect, as Legal Zoom confirms. Do keep in mind that power of attorney laws, and the forms that satisfy them, vary by state. Be sure to use a form that satisfies your state requirement— using an outdated or out-of-state form can leave your agent unable to act when it counts. An estate planning attorney can make sure your document is current and enforceable, though many states also publish their own statutory forms if you’re working without a lawyer.

Here are the basic steps for putting a power of attorney in place:

1. Choose your agent — and a backup.

This is the decision that matters most, more than any legal wording in the document itself. Your agent will have real authority over your money, so choose someone you trust completely: not just someone you love, but someone who’s organized, level-headed, and comfortable handling financial responsibility. Most people also name a successor agent — someone who steps in if your first choice can’t or won’t serve when the time comes.

2. Decide what powers you’re granting.

A power of attorney isn’t all-or-nothing. You can grant broad, general authority over all your financial affairs, or limit your agent to specific tasks — managing a single bank account, handling a real estate transaction, or stepping in only for a defined period of time. Think through what you actually want covered: bill paying, banking, investments, tax filings, real estate, retirement accounts. (This list of power of attorney options may be helpful).

3. Choose when it takes effect.

You’ll also decide whether the POA is effective immediately upon signing, or “springs” into effect only if you become incapacitated. Both are valid, and the right choice depends on how comfortable you are giving your agent access right away versus reserving it for if and when it’s actually needed.

4. Make sure it’s durable.

With the goal of protection against an unexpected capacity decline, your POA needs to be “durable” — meaning it stays in effect even if you become incapacitated. A non-durable POA can actually terminate at the moment you need it most, which defeats the purpose entirely. Don’t skip this detail.

6. Sign it properly.

Most states require your signature to be notarized, and some require witnesses as well. Skipping this step, or getting it wrong, is one of the most common reasons a POA gets rejected by a bank or financial institution right when your agent tries to use it.

7. Distribute it — don’t just file it away.

A power of attorney sitting in a drawer doesn’t help anyone. Give copies to your agent, your successor agent, and consider sharing one with your financial institutions in advance so they have it on file before there’s ever an emergency.

Good to Know: What If You Don’t Have a POA? Guardianship and Conservator Bonds

If you become incapacitated without a power of attorney in place, your family generally can’t just step in. Someone has to petition a court to be appointed as your guardian or conservator — a process that takes time, costs money, and plays out during an already stressful time.

Whether the term “guardian” or “conservator” applies often comes down to your state and specific circumstances, but the core role is the same: both are fiduciaries, held to the highest standard of care recognized by law.

A POA agent is a fiduciary too, but the two roles are overseen very differently. A POA is a private arrangement you set up in advance, so your agent generally doesn’t need a bond — you put your trust in them yourself. A guardian or conservator, by contrast, is appointed by a court, and courts typically require them to obtain a fiduciary bond — often called a guardianship bond or conservator bond— before they can take on the role.

This bond is a financial safeguard for you — the person under guardianship or conservatorship, often called the “ward” in legal terms. It ensures that whoever is entrusted with your care and assets acts honestly, responsibly, and in line with court directives and state law. The court sets the bond amount and terms based on your specific assets and circumstances.

Structurally, a guardianship or conservator bond is a three-party contract: a surety guarantees to the obligee (the court, acting on your behalf) that the principal (your guardian or conservator) will meet all legal and fiduciary standards. If the principal fails in that duty and causes financial harm, the surety compensates you — up to the bond’s value.

Frequently Asked Questions

Q: Does a power of attorney need a bond?

A: Generally, no. Because you choose your own POA agent in advance, the law typically doesn’t require that agent to be bonded. Guardians and conservators, who are appointed by a court rather than chosen by the person they serve, are the ones typically required to obtain a bond.

Q: What is a conservator or guardianship bond?

A: It’s a type of fiduciary bond that protects you — as a minor, an elderly person, or an adult with a disability under a guardian or conservator’s care — from financial harm. If your guardian or conservator mismanages funds or fails their legal duties, the bond gives you a way to recover the loss.

As a trusted, national, direct bond writer, Colonial Surety Company makes it easy to secure guardianship and conservator bonds that meet the exact, state-specific requirements of courts in every state and U.S. territory. To get yours:

1. Select the specific bond you need from our online bond library.

2. Receive an instant quote.

3. Complete the brief application and payment.

4. Download or print your court-ready bond.

Obtain Conservator Bonds Here

Obtain Guardianship Bonds Here

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