Durable Financial Power of Attorney
A financial power of attorney (POA) is a legal document that grants a trusted agent the authority to act on behalf of the principal-agent in financial matters.
The authority outlined in the POA can be fairly broad or, in some cases, restrictive, limiting the agent to very specific duties. Agents named in POAs are legally able to make decisions about the principal's finances, property, and/or medical health. Most POAs are issued when the principal is ill, disabled, or is physically not present to sign important paperwork.
The agent can legally manage the principal's finances and property, make all financial decisions, and conduct all financial transactions that are within the scope of the agreement. He or she is limited to the agreement and cannot do anything not specified under the power of attorney. The agent is legally obligated to make decisions consistent with the wishes of the principal but has full authority to make autonomous decisions until that authority is challenged and/or revoked in a court of law.