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A critical part of estate and emergency planning involves powers of attorney (POA), which authorize someone to act on your behalf for certain matters. The two common types are durable financial and medical powers of attorney. This video provides essential terms before signing any POA forms, compares durable and medical powers, and emphasizes the necessity of having both. Key terms include: Power of Attorney—a document allowing someone to make decisions for you; Principal—the person granting the powers; Agent (or attorney-in-fact)—the trusted individual managing affairs; and Incapacitation—when the principal can no longer make decisions. Durable powers remain effective after the principal becomes incapacitated.