What is a power of attorney?

A power of attorney is a legal document that grants someone the authority to act on behalf of another person in legal or financial matters. The person granting the authority is known as the "principal," while the person receiving the authority is known as the "agent" or "attorney-in-fact."

There are several types of power of attorney, each with its own specific purpose. A general power of attorney grants the agent broad authority to act on behalf of the principal in all legal and financial matters. A limited power of attorney grants the agent authority to act only in specific situations, such as a real estate transaction or a medical decision. A durable power of attorney remains in effect even if the principal becomes incapacitated, while a non-durable power of attorney terminates if the principal becomes incapacitated.

A power of attorney can be an important estate planning tool, as it allows the principal to designate someone they trust to manage their affairs in the event that they are unable to do so themselves. This can be especially important in situations where the principal becomes incapacitated, such as due to a medical condition or injury. A power of attorney can also help avoid the need for a court-appointed guardian or conservator, which can be a time-consuming and expensive process.

It's important to note that granting someone power of attorney is a serious decision, as it gives the agent the authority to act on behalf of the principal in legal and financial matters. It's important to carefully consider the person chosen as the agent, and to work with a qualified attorney to create a power of attorney that meets the specific needs of the principal.