What is a power of attorney?

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A power of attorney is a document that allows a person (the principal) to appoint someone else to act on his behalf. This person who acts on behalf of the principal is called the "agent" or the "attorney in fact". The attorney in fact does not have to be a lawyer. The attorney in fact can do whatever the principal could do in regard to his financial affairs; he or she can pay bills, file tax returns and otherwise do anything in regard to the financial or business affairs of the principal. A power of attorney can be extremely broad or it can be as limited as the principal wishes and is tailored to the desires of the principal.