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What Is a Power of Attorney?

Learn what a Power of Attorney means in this Howcast personal finance video with expert Gregory McGraime.

Transcript

A power of attorney form is a really important estate planning document that's usually just a couple of pages long, and it's a legal document where you designated who you'd want to make legal and/or medical decisions on your behalf in the event that you can't make them yourself. So let me give you an example just to provide some context. Let's say I'm in a car ,accident, and I can't work, and I'm in the hospital care and I'm not really concious for the next couple of months. Terrible situation, happens every day. In that event who am I designated to make medical decisions for me? Is there someone there? Who can pay my mortgage? Who can take money out of my bank account to support my children? All these types of things are handled by a legal, a financial or a medical power attorney form that you've drafted. So, everyone that's watching this, this is part of the basic estate planning, you need to have a power of attorney form in place in case something like this will occur.

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