What is Power of Attorney?
A legal document authorizing someone (the agent) to act on another person's (the principal's) behalf in financial, legal, or medical matters.
Understanding Power of Attorney
Powers of attorney can be general (broad authority) or limited (specific purposes). Durable powers remain effective if the principal becomes incapacitated. Healthcare powers of attorney (healthcare proxies) authorize medical decisions.
Examples
- 1Durable financial power of attorney for elderly parent
- 2Healthcare power of attorney for medical decisions
- 3Limited power of attorney to sell real estate
Related Terms
Will
A legal document that expresses a person's wishes about how their property should be distributed after death and who should care for minor children.
Trust
A legal arrangement where one party (trustee) holds and manages property for the benefit of another (beneficiary) according to the terms set by the creator (grantor).
Probate
The court-supervised process of proving a will's validity, paying debts, and distributing a deceased person's assets to beneficiaries or heirs.
Guardianship
A court-appointed arrangement where one person (guardian) is given legal authority to make decisions for another person (ward) who cannot care for themselves.
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