What is the function of a Power of Attorney (POA)?

The function of a Power of Attorney (POA) is to authorize someone to act legally on another person's behalf. This legal document grants the designated individual, often referred to as the attorney-in-fact or agent, the authority to make decisions and take actions in various matters, such as financial affairs, medical decisions, or legal transactions. This arrangement is particularly useful when the individual who grants the power is unable to act on their own due to absence, illness, or incapacity. The flexibility of a POA means it can be tailored to meet specific needs, either for a particular situation or for a broader range of responsibilities.

In contrast, other options serve different purposes. Appointing a guardian for a minor involves legal proceedings separate from a POA. Establishing a trust fund involves creating a legal entity for managing assets, and determining inheritance rights pertains to the distribution of an estate, typically addressed through a will or probate process. Each of these functions is distinct and does not overlap with the authority granted by a Power of Attorney.