Power of Attorney FAQs What is a power of attorney, and how does it work? It is a legal document that permits one person to appoint another person to act on his or her behalf in certain circumstances. The agent is authorized to make decisions and take actions on behalf of the principal as if they were the principal themselves. What are the different types of power of attorney? The different types of power of attorney include limited, general, durable, and springing power of attorney. How can I grant power of attorney to someone? To grant power of attorney, the principal must meet certain requirements, such as having the capacity to understand the nature and consequences of the document, and must choose an agent or attorney-in-fact who they trust to manage their affairs. What are the responsibilities of the agent or attorney-in-fact? The agent or attorney-in-fact has several responsibilities, such as acting in the best interest of the principal, managing their finances and assets, and making decisions on their behalf. What are the limitations of power of attorney? There are several limitations to be aware of, such as restrictions on the scope of authority and the fact that a power of attorney can be terminated or revoked by the principal. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.