What does a power of attorney grant?

A power of attorney is a legal document that grants one person the authority to act on behalf of another person in legal matters. This arrangement is essential in situations where the individual granting the power may be unable to make decisions for themselves, whether due to illness, absence, or other reasons. The individual assigned the power of attorney, known as the agent or attorney-in-fact, can manage various affairs, including financial transactions, property management, and medical decisions, depending on the scope defined in the document.

This tool is particularly useful in estate planning and healthcare, as it allows for the designated agent to make critical choices according to the wishes of the person who created the power of attorney. When establishing this authority, it is crucial that the document precisely outlines the extent of the powers granted to ensure the agent acts within the scope of the authority given.

The other options do not accurately describe the function of a power of attorney. Inheriting property, for instance, deals with an inheritance process that doesn't involve the delegation of decision-making authority. Similarly, immunity from legal prosecution relates to protections against legal action, rather than the delegation of authority. Exclusive ownership of a business pertains to ownership rights, which is not a function of a power of attorney but rather a matter