Top 3 Myths About Power of Attorney in Texas
If you’re like most Texans, you’ve heard of a power of attorney (POA), but you may not know exactly what it does—or doesn’t do. Unfortunately, many people make assumptions based on half-truths or outdated information. That can lead to expensive mistakes or delays at the worst possible time—usually when a loved one is incapacitated and decisions need to be made fast.
A power of attorney is a foundational piece of any estate plan. It’s the legal document that allows someone you trust (called your agent) to step into your shoes and manage your affairs when you can’t. But despite its importance, POAs are often misunderstood.
Let’s break down the top three myths about powers of attorney in Texas, so you can make informed choices for yourself and your family.
Myth #1: A Power of Attorney Takes Away My Rights
A lot of people hesitate to sign a POA because they think they’re giving up control. “If I name someone as my agent,” they ask, “doesn’t that mean they can do whatever they want with my finances or medical care?”
In Texas, the answer is no. A power of attorney does not take away your rights. When you sign a POA, you are simply authorizing someone to act on your behalf. You are still free to manage your own affairs as long as you’re mentally competent.
Think of it like a team: you’re still the captain, but you’ve appointed someone to assist you or step in if you’re out of commission. Your agent has a legal duty to act in your best interest, and their authority only goes as far as you allow in the document.
You can:
Limit the powers you give them (e.g., only let them handle banking, not real estate)
Choose when it becomes effective (immediately or only if you become incapacitated)
Revoke the POA at any time
Signing a POA gives you more flexibility and protection, not less. It’s a safety net—not a surrender of independence.
Myth #2: My Spouse Can Automatically Act for Me Without a Power of Attorney
Marriage comes with many rights and responsibilities, but automatic decision-making power isn’t one of them. Many people assume their spouse can handle things like selling property, accessing retirement accounts, or making medical decisions if they’re ever incapacitated.
The truth? Your spouse’s hands may be tied without a valid POA.
For example, even if you share a joint checking account, your spouse can’t:
Access accounts or benefits held solely in your name
Sign legal or financial documents for you
Refinance or sell jointly owned real estate without your signature
Make healthcare decisions once you lose mental capacity
Without a POA, your spouse may have to go to court and seek a guardianship—a public, expensive, and slow process that involves judges, lawyers, medical reports, and often ongoing court oversight.
A power of attorney avoids all that. It gives your spouse (or anyone else you trust) the authority to manage your affairs if you’re unable to do so. It’s a simple document that can prevent major headaches.
This is especially important for military families, blended families, or anyone with a complex financial or healthcare situation. Relying on assumptions can leave your loved ones powerless in an emergency.
Myth #3: All Powers of Attorney Are the Same
This myth gets a lot of people in trouble. There are actually different types of powers of attorney in Texas, and using the wrong one—or assuming one covers all situations—can cause serious problems.
Here’s a quick breakdown of the main types:
1. Durable Power of Attorney (Statutory POA)
This document allows your agent to handle financial and property matters on your behalf. It stays in effect even if you become mentally incapacitated, which is why it’s called “durable.” You can choose to have it go into effect immediately or only upon incapacity (a “springing” POA).
With a durable POA, your agent can:
Pay your bills
Handle banking and investments
Manage your business or rental properties
Sign contracts or file taxes
Deal with government benefits
But this POA does not give authority to make medical decisions.
2. Medical Power of Attorney
This separate document allows your agent to make healthcare decisions for you when your doctor certifies that you are unable to do so yourself. It applies to decisions like:
Surgery or treatment plans
Choosing or declining care
Where and how you receive treatment
It does not include end-of-life decisions—that’s handled in a Directive to Physicians (Living Will). And it has no authority over financial matters.
3. Limited or Special POA
This is used for narrow, one-time situations—like authorizing someone to sell a car or sign for you at a closing while you’re out of town. It ends when the specific task is complete or at a set expiration date.
Why It Matters
Many people mistakenly believe that a medical POA covers financial matters, or that a statutory durable POA gives authority over healthcare. It doesn’t. You need both for complete protection—and they should be tailored to your goals.
If you download a generic form or rely on something outdated, you might end up with a document that’s rejected by banks, title companies, or hospitals. Worse, it may give too much power to the wrong person, or too little power to the right one.
A properly drafted POA considers the specific powers you want to grant, the people you trust, and the legal standards in Texas.
Why It All Matters
Think of a power of attorney like insurance. You hope you never need it—but if you do, you’ll be very glad it’s in place.
Here’s what happens when you don’t have one:
Your family might be forced to go to court to get guardianship
Financial accounts could be frozen
Healthcare providers might be legally unable to act
Someone you wouldn’t have chosen may end up in charge of your affairs
The POA is your voice when you’re unable to speak. It gives the people you trust the legal tools they need to help you when you need it most.
Final Thoughts
The power of attorney is one of the most underused and misunderstood documents in estate planning. These myths prevent people from taking action—until it’s too late.
Texas law gives you a clear path to protect yourself, your family, and your future. But you have to take the first step: creating the right documents, choosing the right people, and keeping them up to date.
A power of attorney doesn’t have to be complicated—but it does have to be done right.
As always, this is not legal advice. If you would like to speak with one of our estate planning attorneys, please contact our office below. We’d be more than happy to assist you.
