What is the purpose of a power of attorney?

The purpose of a power of attorney is fundamentally to confer the right of one individual to act on behalf of another. This legal document allows a person, known as the agent or attorney-in-fact, to make decisions and take actions on behalf of the principal, the individual granting the authority. The scope of this authority can be broad or limited, depending on how the power of attorney is structured.

This instrument is particularly useful in situations where the principal may be unable to manage their own affairs due to illness, absence, or other reasons. It can cover various aspects, including financial matters, legal decisions, and even healthcare choices, making it a vital tool for estate planning and managing personal affairs.

Understanding this aspect of the power of attorney clarifies its central role in ensuring that an individual’s wishes and interests are represented and taken care of when they are not able to do so themselves.