A Power of Attorney is a legal document that grants someone the authority to act on behalf of another person, known as the principal, in making financial, legal, and healthcare decisions.

The person appointed as a Power of Attorney can be anyone trusted by the principal, such as a family member, friend, or even a professional, like an attorney or accountant.

The responsibilities of a Power of Attorney may vary depending on the specific powers granted in the document. Generally, their duties include managing the principal’s finances, paying bills, making investment decisions, and handling legal and healthcare matters.

There are different types of Power of Attorney, including a General Power of Attorney, which grants broad authority to the agent, and a Limited Power of Attorney, which gives specific powers for a designated period or purpose. Additionally, there is a Durable Power of Attorney, which remains in effect even if the principal becomes incapacitated, and a Springing Power of Attorney, which only becomes effective upon a certain condition, such as the principal’s incapacity.

The legal requirements for creating a Power of Attorney may vary depending on the jurisdiction. Generally, it requires a written document signed by the principal while they have the mental capacity to understand the powers they are granting. It may also require witnesses or notarization depending on the local laws.

While a Power of Attorney grants significant authority, there are limitations to what the agent can do. For example, they must always act in the best interest of the principal, they cannot make decisions beyond the powers granted in the document, and they cannot change the principal’s will or create a new one.