What does a Power of Attorney (POA) legally allow one person to do?

A Power of Attorney (POA) legally allows one person to act on behalf of another person, which encompasses a wide range of responsibilities and powers. This legal document is established to enable an individual, known as the agent or attorney-in-fact, to make decisions regarding the financial, legal, and sometimes healthcare-related affairs of the person granting the power, known as the principal.

The essence of the POA is to ensure that the agent can operate in the best interests of the principal, especially when they are unable to make decisions themselves due to incapacity, absence, or other reasons. This may include managing bank accounts, making investments, handling real estate transactions, or addressing healthcare decisions, depending on the scope outlined in the POA document itself.

Understanding the power afforded by a POA is crucial, as it establishes a fiduciary relationship where the agent is expected to act in good faith and with due diligence. It underscores the importance of selecting a trustworthy individual, as the agent will have significant authority to influence important aspects of the principal’s life.

Given this context, the other listed options do not accurately reflect the legal functions or limitations associated with a Power of Attorney. While it often entails accessing personal information or making specific decisions, these actions are