Power of Attorney

What Is Power of Attorney? A power of attorney (POA) is a legal instrument that grants one person (the agent or attorney-in-fact) the authority to make decisions and take actions on behalf of another person (the principal). The scope of authority can range from a single specific transaction to broad control over all of the principal's affairs. ## Types of Power of Attorney - **General POA** grants broad authority over financial and legal matters - **Limited (special) POA** grants authority for specific transactions or time periods - **Durable POA** remains effective even if the principal becomes incapacitated - **Springing POA** takes effect only upon a specified triggering event, such as incapacity - **Medical (healthcare) POA** grants authority to make healthcare decisions ## Important Considerations The agent under a power of attorney owes fiduciary duties to the principal, including the duty of loyalty, care, and good faith. A POA can be revoked at any time by a competent principal. Third parties such as banks and financial institutions may have specific requirements for accepting a POA. Most states require notarization, and some require witness signatures for validity.