Why Keeping Your Power of Attorney Documents Updated Matters
A power of attorney is one of the most important documents in your financial and estate plan — and one of the most commonly overlooked. Many people sign one once, file it away, and never look at it again. Years later, when the document is actually needed, it may be outdated, inconsistent with current state law, or no longer accepted by the bank or medical provider it was meant to work with.
In short: a power of attorney (POA) gives someone you trust the legal authority to act on your behalf if you become unable to manage your own financial or medical decisions. If yours is more than a few years old, was signed in a different state, or was drafted before a major life change, it's worth a review now — not after a crisis makes it urgent.
What a Power of Attorney Actually Does
A power of attorney is a legal document that names an "agent" (sometimes called an "attorney-in-fact") to make decisions or take actions on your behalf. There are two main types most people need:
Financial (or durable) power of attorney — authorizes your agent to manage bank accounts, pay bills, handle investment accounts, file taxes, or manage property if you're unable to do so yourself.
Healthcare power of attorney (medical power of attorney) — authorizes your agent to make medical decisions on your behalf if you can't communicate them yourself. This is often paired with a living will or advance directive.
"Durable" means the document stays in effect even if you become incapacitated — which is the entire point. A non-durable POA can actually lapse at the moment it's needed most, so confirming yours includes durability language is a good first check.
Why "Set It and Forget It" Doesn't Work Here
Unlike a will, which only takes effect after death, a power of attorney is meant to work while you're alive — often during an emergency, illness, or period of cognitive decline. That makes its accuracy and validity at the moment of use critical. A few reasons documents that were perfectly fine when signed can fail years later:
State law changes. Power of attorney requirements — witnessing rules, notarization standards, required language — vary by state and do change over time. If you moved states since signing yours, it may not meet your new state's requirements.
Financial institutions get stricter. Banks and brokerage firms have increasingly tightened their internal standards for accepting a POA, particularly older documents or ones that don't explicitly list certain powers (like authority over retirement accounts or the ability to make gifts). Even a technically valid document can be rejected at the counter if it doesn't match a firm's current checklist.
Life changes the people you'd choose. A POA naming an ex-spouse, an agent who has since passed away, or a sibling you're no longer close with is a document working against your current wishes, not for them.
New accounts and assets need to be covered. If you've opened new accounts, started a business, or acquired property since your POA was signed, make sure the document's language is broad enough to cover them — or specific enough if that's what you intend.
What Happens If You Don't Have One (or Yours Has Lapsed)
Without a valid power of attorney in place, if you become incapacitated — even temporarily, such as after a serious accident or medical event — your family typically cannot simply step in to manage your finances or make medical decisions for you. In most states, they would need to petition a court for guardianship or conservatorship, a process that is often public, can take weeks, involves attorney and court costs, and puts the decision in a judge's hands rather than yours. This is exactly what a power of attorney is designed to prevent.
A Simple Review Checklist
Consider reviewing your power of attorney documents if any of the following apply:
It has been more than three to five years since you signed or last reviewed them
You've moved to a different state since signing
You've married, divorced, remarried, or lost a spouse
Your named agent (or successor agent) has passed away, become incapacitated themselves, or is no longer someone you'd choose today
You've opened new financial accounts, started a business, or your net worth has changed meaningfully
A bank, brokerage firm, or medical provider has told you your existing document isn't sufficient for their purposes
Steps to Take Now
Locate your current documents. If you can't find a signed original, that's itself a sign it's time to redo them.
Review the named agents and successors. Confirm they're still the people you'd choose today, in the order you'd choose them.
Check the powers granted. Make sure the language is current and specific enough to cover retirement accounts, digital assets, gifting authority, or business interests, if relevant to you.
Confirm the documents are durable and meet your current state's execution requirements.
Talk to an estate planning attorney. Because these are legal documents with state-specific requirements, an attorney should draft or review the actual language. Your financial advisor can help coordinate this conversation and make sure your POA aligns with the rest of your financial and retirement plan.
Tell your agents where the documents are. A POA that exists but can't be found in an emergency doesn't help anyone.
Frequently Asked Questions
How often should I update my power of attorney? Most estate planning professionals suggest reviewing it every three to five years, or sooner after any major life event such as a move, marriage, divorce, or death of a named agent.
Is a power of attorney the same as a will? No. A power of attorney is only effective while you're alive and becomes void at death. A will only takes effect after death. Most complete estate plans include both, along with a healthcare directive.
Can I have more than one power of attorney document? Yes — it's common to have a separate financial power of attorney and healthcare power of attorney, and you can name different agents for each if that makes sense for your situation.
Does my power of attorney work in every state? Not always. Requirements vary by state, and some institutions or states may not honor a POA executed elsewhere without additional steps. If you've relocated, it's worth having your documents reviewed by an attorney licensed in your current state.
The Bottom Line
A power of attorney is only useful if it's current, accurate, and can actually be found and honored when it's needed. Reviewing yours periodically — alongside the rest of your financial and estate plan — is a small step now that can spare your family significant stress, delay, and expense later.
Get Your Power of Attorney Documents Taken Care Of — At No Cost to You
The good news: fixing this doesn't have to be complicated or expensive. Through our attorney-led estate planning program, qualifying clients can have their power of attorney documents prepared at no cost, with the actual drafting handled by a licensed estate planning attorney as part of the program.
If it's been years since you signed your POA, you can't locate it, or you're not sure it still reflects your wishes, let's get it resolved now rather than during an emergency.
Reach out today to get started:
Call us: (219) 312-4128
Email us: [email protected]
Schedule a time to talk: Schedule Appointment
Availability of complimentary power of attorney document preparation is offered through our firm's attorney-led estate planning program in partnership with a licensed attorney; eligibility, scope, and availability may vary and are not guaranteed to every reader.
This article is provided for general educational and informational purposes only and does not constitute legal, tax, or individualized financial advice.
Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC-Registered Investment Advisor. SEC registration does not imply any level of skill or understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and separate legal entities.
