What does power of attorney allow one person to do?

The power of attorney is a legal document that grants one person the authority to act on behalf of another person in various legal and financial matters. This includes the ability to sign documents, manage finances, make decisions regarding assets, and handle business dealings. The essence of power of attorney is that it provides the designated person, known as the agent or attorney-in-fact, the power to take actions that the principal (the person granting the power) would typically have to take themselves.

This is especially useful in situations where the principal may be unable to manage their own affairs due to absence, incapacity, or other reasons. The scope of authority granted can be general or specific, depending on the terms outlined in the power of attorney document.

The other options do not accurately represent the full scope of power of attorney. For instance, managing one’s own legal affairs implies that the individual is acting solely for themselves, not on someone else’s behalf. Overseeing a company's financial records is more related to corporate governance or management roles, which do not fall under the personal power of attorney. Lastly, while some power of attorney documents can specifically pertain to healthcare decisions (often referred to as healthcare power of attorney), the general form of power of attorney encompasses a broader range