Understanding Power of Attorney: Types and Responsibilities

POA stands for Power of Attorney. It is a legal document that authorizes one person (the attorney-in-fact or agent) to make decisions and act on behalf of another person (the principal). The person granting the power of attorney (the principal) gives the attorney-in-fact the authority to make decisions about their financial, legal, and/or medical affairs.

There are different types of POAs, including:

1. General Power of Attorney: This type of POA grants the attorney-in-fact broad authority to handle all aspects of the principal's life, including financial, legal, and medical matters.
2. Limited Power of Attorney: This type of POA grants the attorney-in-fact authority to handle only specific matters or transactions, such as selling a house or managing investments.
3. Durable Power of Attorney: This type of POA remains in effect even if the principal becomes incapacitated or mentally incompetent.
4. Springing Power of Attorney: This type of POA takes effect only when a specific event occurs, such as the principal becoming incapacitated.

The person granted with the power of attorney is legally authorized to make decisions on behalf of the principal and act in their best interests. However, the attorney-in-fact must act within the scope of the authority granted by the principal and must follow the principal's wishes and instructions as much as possible.