what is poa

A power of attorney (POA) is a legal document that allows someone else to act on your behalf in private affairs, business, or some other legal matter. The person authorizing the other to act is the principal, grantor, or donor. There are different types of POAs, including financial POA, medical POA, general POA, and special POA. A financial POA allows an agent to manage the business and financial affairs of the principal, such as signing checks, filing tax returns, and managing investment accounts. On the other hand, a medical POA, also known as a health care proxy or advance directive, gives the attorney-in-fact authority to make healthcare decisions on behalf of the principal. A general POA allows the agent to make decisions about legal, health, and financial transactions, while a special POA can limit the authority to a specific subject, such as managing specific affairs. It is important to note that a POA must be dated, and it cannot be irrevocable. The grantor may terminate the POA at any time at their sole discretion. Creating a POA typically involves putting it in writing, specifying the date of creation, expiration date (if applicable), the name of the attorney-in-fact, and a description of the granted authority, signing the POA, and possibly having it witnessed and notarized.