What is a Power of Attorney?

A Power of Attorney is fundamentally a legal document that allows one individual, referred to as the agent or attorney-in-fact, to make decisions on behalf of another individual, known as the grantor. This decision-making authority can encompass a broad range of actions, including financial, medical, and property management decisions.

The power conferred by this document can be specific to particular tasks or can be general, allowing the agent to make various decisions as if they were the grantor. In situations where the grantor is unable to make decisions due to illness or absence, a Power of Attorney becomes especially critical, as it enables trusted individuals to act on their behalf in accordance with their wishes.

In contrast, the other options represent different concepts: an agent representing someone in court relates to legal representation, a contract to sell real estate pertains to property transactions, and an obligation to repay a loan refers to financial responsibilities. Each of these is distinct from the primary role of a Power of Attorney as a document granting decision-making authority.