Power of Attorney

In one sentence

A legal document authorizing someone to act on your behalf in financial or medical decisions.

Plain English

A power of attorney is a document you sign giving another person (called an agent or attorney-in-fact) the authority to make decisions and sign documents for you. You can make it broad (covering all financial matters) or narrow (only for selling a specific property). It takes effect immediately or only if you become incapacitated, depending on what you choose.

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Example

Maria signs a durable power of attorney naming her daughter as her agent. If Maria has a stroke and cannot manage her finances, her daughter can pay bills, access bank accounts, and handle investments without going to court.

Used in a sentence

“He granted his wife a power of attorney so she could manage his business affairs while he was deployed overseas.”

Related terms

Living Will

A document stating your wishes about life-sustaining medical treatment if you become unable to communicate.

Guardianship

A court-ordered arrangement where one person has legal authority to care for another who cannot care for themselves.

Probate

The court process of validating a will and distributing a deceased person's estate.

Executor

The person appointed to carry out the instructions in a will.

Legal Capacity

The legal and mental ability to enter into a binding contract.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Intestate Succession

The legal process of distributing a deceased person's property when they leave no valid will.

Elective Share

A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.