A power of attorney (POA) is a legal document that allows someone else, known as an agent or attorney-in-fact, to act on your behalf in case you are unable to do so yourself, whether due to incapacity or death. The person you appoint can be anyone you trust, such as a lawyer, a nurse, or a friend or relative. There are different types of power of attorney, including:

• General power of attorney: This provides broad powers to the agent to make decisions about legal, health, and financial transactions, including opening and closing bank accounts, paying bills, and managing investments.

• Specific power of attorney: This is for a set number of things, such as selling a property or managing a business.

• Healthcare power of attorney: This allows a person to make medical decisions for you, such as choosing treatments or deciding whether to continue life support.

• Financial power of attorney: This gives someone else the right to manage your financial matters, including investment portfolios, property, or whatever financial assets you need help with when you arent available to do it yourself.

The attorney-in-fact named in a power of attorney document takes responsibility for making decisions on your behalf after the power of attorney goes into effect. They are required by law to manage your money and real property for your benefit and in your best interests, not theirs. However, a power of attorney does not make the agent responsible for the principals debts when they die unless other legal ties obligate them.