A power of attorney is a written legal document that appoints someone to act on behalf of a principal. As the one making a power of attorney, you are the principal. The person you appoint is called the attorney-in-fact (or agent).

In Missouri state law, powers of attorney are durable unless the document states otherwise. “Durable” means a power of attorney is effective regardless of incapacity or disability. Most powers of attorney are durable since they serve as a backup in case you become unavailable or incapacitated. If you wish to appoint someone to make health care decisions when you cannot do so, you need to execute a health care power of attorney (also called a health care directive).

Your attorney-in-fact should be willing to look out for your best interests and have knowledge about your business. For example, an attorney-in-fact should know your routine business activities, where you keep financial or brokerage accounts, and whether you pay a mortgage. People often choose their spouse, live-in partner, close friend, or business partner to fulfill this role. Choose a successor attorney-in-fact as well in case your primary choice is unable to serve in their role in the future.

Generally, an attorney-in-fact is in a trusted position to handle financial duties on your behalf as long as they act in your interest and not to their benefit. But you can make a power of attorney as broad or as limited as needed. You may wish to allow your attorney-in-fact specific powers to handle financial affairs, like paying bills on time but restrict their access to life insurance policies or beneficiaries on your retirement plan or annuity accounts.

You must sign your financial power of attorney in front of a notary who acknowledges your signature. Notary publics are available at your local financial institution, or you can hire a mobile notary to visit you at home to complete the power of attorney. If you hire a law firm to review or draft your power of attorney, they will have a notary public available on staff.

Store the original power of attorney in a safe deposit box or a fireproof filing cabinet. Make copies and provide them to your attorney-in-fact, successor attorneys-in-fact, family members, and anyone else affected by the document.

If you need to revoke a power of attorney, you have two options. You can execute a new power of attorney or a document called a revocation of power of attorney. Most people simply make another power of attorney.