How To Use A Power Of Attorney To Manage Financial And Medical Decisions

A power of attorney can give someone the authority to act on another person’s behalf in a wide range of situations. In South Carolina, this document often plays a key part in planning for unexpected events, medical care, and long-term financial matters. Whether you're caring for a parent, supporting a spouse, or planning your affairs, knowing how to use a power of attorney is essential.
Here, we’ll walk through what a power of attorney is, how it works in medical and financial matters, and how to use it effectively. At Porter Law Firm, we have the knowledge and experience to serve our clients who are making estate planning decisions in Mount Pleasant, South Carolina.
A power of attorney is a legal document that allows one person—called the agent or attorney-in-fact—to act on behalf of another person, known as the principal. The scope of this authority depends on how the document is written. Some powers of attorney are broad, while others are limited to specific decisions.
South Carolina law allows for both durable and non-durable powers of attorney. A durable power of attorney stays in effect even if the principal becomes incapacitated. A non-durable one ends when the principal can no longer make decisions. Most people who want long-term help with managing medical or financial needs use a durable version.
This document doesn’t transfer ownership or take away rights from the principal. Instead, it gives the agent permission to act when the principal can’t or chooses not to. It’s often used for aging parents, military deployments, or when someone is recovering from an illness or injury.
The agent holds a position of significant trust. This person might handle sensitive financial information or make serious medical decisions. Because of that, choosing the right person matters.
Some people pick a spouse, adult child, sibling, or close friend. Others name a professional like an accountant or financial advisor. Whoever you choose, they should be responsible, organized, and willing to act in your best interests.
Here are some traits to consider when selecting an agent:
Has a clear understanding of your values and preferences
Is comfortable making difficult decisions
Has time to manage tasks as needed
Communicates well with family and professionals
It’s also possible to name more than one agent. They can act together or separately, depending on how the document is written. That said, multiple agents can sometimes lead to confusion or delays, so think through that choice carefully.
A financial power of attorney allows your agent to handle tasks like paying bills, filing taxes, managing investments, or dealing with real estate. This kind of authority can be broad or limited to certain actions.
In South Carolina, a financial power of attorney must follow the South Carolina Uniform Power of Attorney Act. This law provides default rules but also gives people flexibility to customize their documents.
If the power of attorney is durable, the agent can act even if the principal becomes mentally or physically impaired. That makes it useful for long-term planning. For instance, if someone is diagnosed with Alzheimer’s disease, a durable financial power of attorney allows their agent to continue handling bank accounts or managing income.
Agents must act in good faith, keep records, and avoid mixing personal funds with the principal’s money. They can’t give away the principal’s property or change estate plans unless the document allows it.
A medical power of attorney allows an agent to make healthcare decisions when the principal can't do so. This might include choices about treatments, surgery, long-term care, or end-of-life care.
In South Carolina, this type of document is often called a Healthcare Power of Attorney. It’s separate from a living will, though people sometimes create both together. A living will outlines specific wishes, while the power of attorney gives someone the legal authority to act.
The agent can speak with doctors, review records, and give or withhold consent for treatment. This can be especially helpful during emergencies when quick decisions are needed. The agent must understand the principal’s values and medical preferences.
People often use this document to prepare for chronic illness or aging. It’s also helpful for younger adults to have one in case of unexpected accidents or surgeries.
To use a power of attorney legally and effectively, both the principal and the agent need to take certain steps. South Carolina has specific rules about how these documents must be created, signed, and used.
Here’s what to keep in mind:
Write It Clearly: The document should be detailed about what the agent can and can’t do. It should say whether it takes effect immediately or only after a doctor certifies that the principal is unable to act.
Follow State Law: South Carolina requires signatures to be notarized and witnessed. A power of attorney that doesn’t follow these rules may be rejected by banks, hospitals, or other institutions.
Keep It Accessible: Store the document somewhere secure but reachable. The agent should have a copy, and you might also want your attorney or a trusted relative to hold one.
Tell People Who Need To Know: Doctors, banks, and care facilities may need to see the document before accepting decisions from the agent. Letting them know ahead of time can help avoid delays.
Review It Regularly: If your life or relationships change, update your power of attorney. This is especially important after a divorce, move, or major health event.
Some people think a power of attorney takes away their rights—but it doesn’t. As long as the principal is mentally capable, they can still make decisions and revoke the document at any time.
Others assume a power of attorney is permanent. It can be canceled, replaced, or allowed to expire. It also ends automatically when the principal dies. At that point, an executor or personal representative takes over under a will.
Another misconception is that a power of attorney can cover everything. In reality, certain powers—like creating a will—can’t be transferred. That’s why the document needs to be clear and thorough.
Sometimes agents misuse their power, either by mistake or on purpose. If there’s reason to believe that an agent is acting improperly, family members can ask the court to step in. South Carolina courts can remove an agent or require them to provide an accounting of what they've done.
It’s also possible for an agent to step down. If that happens, the document should name a successor agent or describe what happens next. Without a backup, decisions may be delayed until the court appoints someone.
If the power of attorney isn’t accepted by a bank or hospital, it could be due to how the document is written or signed. Having a well-drafted and up-to-date version can reduce the chance of pushback.
It’s recommended to put a power of attorney in place before it's urgently needed. Once someone becomes incapacitated, they can no longer legally sign the document. At that point, family members may need to ask the court for guardianship or conservatorship.
By acting early, you can choose who you trust, put your wishes in writing, and avoid lengthy court processes. It also gives you time to talk through your preferences with the person you’ve chosen as your agent.
While it's possible to create a power of attorney on your own, many people prefer to work with an attorney. This can help reduce errors, clarify your intentions, and address specific issues related to your health, finances, or family structure.
South Carolina law allows for flexibility, but it also requires specific formalities. A power of attorney lawyer can draft a document that’s tailored to your needs and meets all legal requirements.
Whether you need a financial power of attorney, a medical one, or both, getting clear advice can help you avoid problems later. It can also make things smoother for your loved ones during stressful times.
If you're thinking about setting up a power of attorney, or you’ve been named as someone’s agent, it’s important to know your rights and responsibilities. These documents can bring peace of mind, but only if they’re created and used the right way. At Porter Law Firm, we're proud to serve Mount Pleasant, Charleston, Summerville, and Hilton Head, South Carolina. Contact us today to learn more.