It’s Not Luck, It’s Preparation: Why Your Power of Attorney Matters

Somewhere between death and being a healthy fully functioning human on this earth, there is a space we do not like to think about and that is the “in between”. 

Attorneys and medical professionals call this space “incapacity”, and really what seems like they are attempting to describe is a situation in which your body is still here but your abilities may not be. Yuck, no thank you. But lately we have been asked to enter into the “in between”  space in our work and think about what it would be like to support clients in the uncomfortable middle.

It’s got us thinking a lot about the Power of Attorney document, and this week’s blog post talks about the POA document and what the role of agent means. Special thanks to Jill Mastroianni and her podcast on this important topic, we learned so much! 

What is a Power of Attorney (POA)?

A Power of Attorney is a legal document that allows you to appoint someone (your “agent”) to make decisions on your behalf if you’re unable to do so.

You (the “principal”) are giving that person the authority to step into your shoes—typically for financial matters, healthcare decisions, or both. It works alongside your other estate planning documents, but serves a very specific purpose: it only applies while you are living.

Depending on how it’s written, your agent may be able to manage accounts, pay bills, work with financial institutions, and in some cases make healthcare decisions. But timing matters—once someone loses capacity, the opportunity to put a POA in place is gone. That’s why this planning needs to happen before it’s urgent.

Here is a quick overview of the power of attorney documents we see most often in Tennessee:

• Durable Financial Power of Attorney
  • This is the most commonly used POA. It allows someone to manage financial matters—like paying bills, accessing accounts, handling investments, or dealing with property.

• Healthcare Power of Attorney
  • This allows someone to make medical decisions on your behalf if you are unable to do so. In Tennessee, this is often included as part of an Advance Directive for Healthcare.

For the purposes of this blog, we will be focusing on the Durable/Financial Power of Attorney document, however see below for a helpful resource for those looking for a 3rd party to serve as their agent under a healthcare POA.

There are also different paths for when your agent can start acting on your behalf:

• Immediate POA
  • An immediate POA is effective as soon as it’s signed. That means your agent can act right away—even if you’re still fully capable—but in practice, they only step in when needed.
• Springing POA
  • A springing POA only becomes effective once you are declared incapacitated—usually requiring confirmation from a physician (or sometimes more than one).

What your POA actually needs to succeed

When someone steps in as your agent under POA, they aren’t just holding a document—they’re stepping into your life.

They’re trying to figure out what exists, what needs attention, and who to call. A POA gives them authority, but it does not give them context.

There are also important limits to understand. A POA cannot continue after death, cannot override your estate plan, and cannot act outside of the authority granted in the document. And even within that authority, access isn’t always automatic—institutions still have their own processes. Jill Mastroianni’s podcast covers how best to ensure your POA documents are added to your important accounts and how to work through roadblocks when they occur.

Serving as an agent under POA is rarely a one-time task—it’s an ongoing responsibility that can last for months or even years.

Day-to-day, it may look like:

• Handling time-sensitive issues with banks, providers, or insurance

On a weekly basis:

• Monitoring accounts and making sure bills are paid

On a monthly basis:

• Managing overall cash flow and larger expenses
• Coordinating with advisors and making bigger-picture decisions

Over time, the role becomes less about individual tasks and more about keeping everything moving across multiple areas of someone’s life.

Give your POA a roadmap

If you want your plan to actually work, your agent under POA needs more than a document—they need a starting point.

That means having a clear picture of your financial life, how things are paid, who your key advisors are, and where important information lives. Without it, your agent is left tracking things down and trying to piece everything together in real time.

We often describe this as creating a “map” of your life—so your agent under POA can step in and manage, rather than search. We talk all about creating the map and organizing your estate in this blog post.

Or if you’d like Sunny to work with you on creating this roadmap, please reach out!

Local Partner Spotlight: ElderCARE, LLC

While we do not currently help support agents serving under POA for Healthcare, we are big fans of the ladies at ElderCARE (who are willing to serve as agent under POA for Healthcare). Their team of nurses, social workers, and therapists helps families understand options, coordinate care, and navigate difficult transitions—all with the goal of bringing clarity, support, and peace of mind. To learn more or schedule a consultation, visit their website.