6 powers of attorney that benefit military members

Being away from home is a natural part of military life. The average military deployment lasts six to 12 months, while temporary duty orders (TDY) and remote training courses can take service members away from home.

So it makes sense that military members often need backup when it comes to managing their day-to-day finances. Military life is inherently risky, and if something were to happen to you that meant you could no longer handle financial matters, you would want someone else to be able to fill in for you.

A power of attorney is a legal document that gives another person the authority to sign documents or act on your behalf, usually when you’re away from home or temporarily unavailable.

Six types of powers of attorney can benefit military members and their families. It’s important to understand what each one means and when you may need one versus the others.

1. General power of attorney
2. Limited power of attorney
3. Durable power of attorney
4. Medical power of attorney
5. Financial institution power of attorney
6. Springing power of attorney

1. General power of attorney

A general power of attorney grants someone broad legal authority to act on your behalf. It’s convenient because it doesn't require you to predict in advance every legal scenario in which you might need help.

If you appoint someone to be your general power of attorney, they can do things like file tax returns on your behalf, pay your bills or borrow money in your name.

Choose this person carefully. It should be someone you trust completely. Whoever you give this authority to may have a lot of control over your financial decisions — but that's the point of having it in place.

Your general power of attorney should also be capable. Choose someone who is skilled at handling their own finances. If the person you have in mind can't manage their own, you probably don't want to put them in charge of yours.

For example: The person you select as your general power of attorney will have access to your accounts, like savings or checking. This is good if they use this access to pay your bills, but can be bad if they decide to help themselves to a nice dinner on your dime.

Your general power of attorney will also have access to your credit card. Again, this is helpful if they pay your credit card bill or handle a fraud notification but can be bad if they use your credit card to treat themselves to a vacation.

While a power of attorney is often given to a spouse or a parent, only you know who has your best interests at heart. Who will use the power of attorney for your benefit and not take advantage of you?

2. Limited power of attorney

If you don't feel comfortable granting someone a general power of attorney — or if you don't need to grant someone that much decision-making power — you can give them a limited power of attorney, also called a special power of attorney.

A limited power of attorney allows the person you choose to perform a specific transaction on your behalf. For example, you can give someone the authority to pay your bills or represent you if you're selling your home while you're deployed or on TDY.

Because this type of power of attorney is limited and has a narrow scope, you'll need to secure a new one for every new type of business relationship.

3. Durable power of attorney

You may have heard of regular, or nondurable, power of attorney. Under regular powers of attorney, the named agent's authority ends if you become incapacitated.

On the other hand, a durable power of attorney ensures your named agent can continue to act on your behalf even if you become incapacitated or mentally incompetent. You'll also eliminate the need for someone to go to court to establish a guardianship to serve on your behalf.

A durable power of attorney is especially important due to the danger involved in military life. Service members are exposed to risk, and if you are injured and unable to manage your finances, you want the person you put in charge to be able to continue to manage them until you get better.

That’s why it’s important to specify your durable power of attorney, because if you’re incapacitated the court might not appoint the person you would have chosen.

A durable power of attorney is for financial matters and doesn't grant someone the ability to make medical decisions on your behalf. For that, you'll need a medical power of attorney.

4. Medical power of attorney

A medical power of attorney is used to designate a trusted individual as your health care agent. It empowers them to interpret your wishes and make medical decisions on your behalf.

When you pick a medical power of attorney, think about who can maintain a level head during an emergency. This might be a different person than who you ask to manage your finances.

Be sure to communicate your health care preferences with this person so they can act in accordance with your wishes.

When you name your medical power of attorney, work with an attorney to draft legal documents such as a living will that spells out your medical treatment wishes. This document includes instructions should you become incapacitated, including "do not resuscitate (DNR)” or “do not intubate (DNI)" ordersOpens in a new window.‍ ‍ ^{See note 1}

5. Financial institution power of attorney

Many financial institutions require their own power of attorney for someone to act on your behalf with them. This is an important step in ensuring your finances can be fully managed in your absence.

Before you leave, check with all of your financial institutions to verify that they'll accept a power of attorney outside of their organization. Ask them if they require additional forms.

6. Springing power of attorney

Powers of attorney like the ones we've mentioned are effective as soon as they're signed. But what if you don't want to grant someone power immediately? What if you want to wait until a specific event occurs? A springing power of attorney only goes into effect on a specified date or under a specified condition.

People commonly use springing power of attorney to be prepared in case of disability or mental incapacitation. They can also be used for other events. For example, if you're planning to climb Mount Everest, maybe you want a plan in place if you don't return in 60 days.

One downfall with springing powers of attorney is the time it can take for them to be enacted. It can take weeks, maybe months, for a physician to sign off on the necessary documentation to have you declared incapable of handling your finances. During this time, your finances are not being handled, and bills keep piling up.

The goal of any power of attorney is to prevent the disruption a TDY or deployment can cause to other areas of your life. From your health to your finances, finding someone who'll always act in your best interests and giving them power to manage what you can't while you're away is a key part of being in the military.

Regardless of the type of power of attorney you decide is right for you and your family, be sure to communicate your wishes with that person. You want everyone to know what to expect, so your power of attorney has what they need and you can feel confident you've done all you can to secure your finances.