Which legal document allows for a person to manage another's financial matters?

A power of attorney is a legal document that grants an individual the authority to act on behalf of another person in legal or financial matters. This arrangement allows the appointed person, often referred to as the agent or attorney-in-fact, to make decisions regarding the management of finances, property, and other financial affairs. The authority can be broad or limited, depending on the language within the document and the specific needs of the individual granting the power.

This tool is widely used for various situations, such as when someone is unable to manage their own financial matters due to illness, disability, or absence. It provides a clear legal mechanism for an appointed individual to handle responsibilities like paying bills, filing taxes, and managing investments on behalf of the individual who granted the power.

Even though other options, such as durable power of attorney, may seem similar, the basic definition of a power of attorney encompasses both general and specific forms. A durable power of attorney is a specific type that remains effective even if the principal becomes incapacitated, but it is still categorized under the broader umbrella of power of attorney. Limited guardianship refers to a court-appointed role often focused on personal care rather than financial management, while a financial affidavit is typically a statement of financial status rather than a document