Power of Attorney

In Indiana, a power of attorney (governed by Indiana Code § 30-5) is a legal document authorizing another person to act on your behalf. There are three main types: a financial/durable power of attorney (for managing money and property), a healthcare power of attorney (for medical decisions), and a power of attorney for a minor (if you need someone to care for your child). Without a power of attorney, your family may need a costly guardianship if you become incapacitated.

What a Power of Attorney Does

A power of attorney (POA) is a legal document where you authorize someone else (called an agent or attorney-in-fact) to act on your behalf. You choose who has this authority, what they can do, when it starts, and when it ends.

Indiana powers of attorney are governed by Indiana Code § 30-5. The key advantage: if you become incapacitated, your agent steps in and manages your affairs without requiring a guardianship.

Three Types of Powers of Attorney

Financial / Durable Power of Attorney

This authorizes your agent to manage your money, property, and business affairs. A “durable” power of attorney remains in effect if you become incapacitated (this is critical). Without a durable POA, your family may need to go to court for guardianship to pay your bills or manage your property.

Healthcare Power of Attorney

This authorizes your agent to make medical decisions if you cannot. It works alongside your living will (and other healthcare advance directives). This is different from a financial POA — you need both if you want complete coverage.

Power of Attorney for a Minor

If you need someone other than yourself to have authority over your child’s care, education, and decisions (for example, if you’re traveling for an extended period), you can grant a temporary power of attorney to a family member or trusted person.

When Powers Activate

Your power of attorney can become effective:

• Immediately upon signing (in which case your agent can act alongside you right away)
• Only if you become incapacitated (“springing” POA — though these can create confusion and disputes about whether you’re truly incapacitated)

Many people choose the “immediate but durable” approach: your agent can act now if needed, and can continue acting if you become incapacitated.

Choosing Your Agent

Your agent needs to be someone you trust completely. They will have access to your bank accounts, property, and ability to make financial decisions. Choose carefully. Ideally, your agent is:

• Trustworthy and honest
• Organized and detail-oriented
• Willing to take on the responsibility
• Willing to be impartial if you have multiple children
• Local (preferably) so they can manage affairs without traveling far

You can name multiple agents (who act together or separately) or name successors in case your first choice is unavailable.

Risks of Not Having a Power of Attorney

Many people think “it won’t happen to me.” But illness, injury, and incapacity are unpredictable. Without a power of attorney:

• Your family cannot access your bank accounts or pay your bills
• They cannot sell property or manage your business
• They must ask the court for guardianship — an invasive, expensive process
• A court appoints a guardian, who may not be the person you would have chosen
• A court may place restrictions on the use/ sale of assets
• Your medical wishes may not be honored if you can’t communicate them

How Griffith Xidias Law Group Helps

We help you create financial and healthcare powers of attorney tailored to your situation. We discuss who should be your agent, what authority they should have, and how the documents should work if you become incapacitated.

We also ensure your powers of attorney work together with your other estate planning documents — your living will, your healthcare directives, and your trust.

Learn more about related healthcare planning documents:

• Explore healthcare directives and living wills
• Learn about elder law planning for comprehensive incapacity preparation

Return to estate planning.

Frequently Asked Questions

Can my agent act immediately, or only if I’m incapacitated?

You decide. An immediate POA lets your agent act now (helpful if you’re traveling or need help with bills). A “springing” POA only activates if you become incapacitated. Most people prefer immediate because it’s simpler — with a springing POA, someone has to prove you’re incapacitated, which can cause delays.

Is a power of attorney the same as a guardianship?

No. A power of attorney is a document you sign granting authority. A guardianship is a court process imposed when someone cannot manage their affairs. A POA is faster, cheaper, and gives you control over who manages your affairs. A guardianship is what happens when you don’t have a POA.

What happens to my power of attorney after I die?

Your power of attorney automatically ends at your death. Your executor or trustee then takes over managing your estate according to your will or trust.

Do I need both a financial and healthcare power of attorney?

Yes. They serve different purposes. Your financial POA handles money and property; your healthcare POA handles medical decisions. You need both for complete protection. Your healthcare POA is separate from your living will.

How much does a power of attorney cost?

Powers of attorney typically cost $100–$400 depending on complexity. When you compare this to the cost of a guardianship (easily $5,000–$15,000 and often ongoing), having a POA is clearly an investment in protecting your family.