What is a power of attorney?

A power of attorney is a legal document that authorizes one person to act on behalf of another person in various matters, which can include financial, legal, and healthcare decisions. This authority can be broad or limited, depending on how the document is drafted. The person who grants this authority is often referred to as the principal, while the individual granted the power is known as the agent or attorney-in-fact.

This document is particularly important because it enables the agent to make decisions and perform actions on behalf of the principal, especially in situations where the principal may be unable to do so themselves due to illness, incapacity, or absence. The key aspect here is the delegation of authority to act for another, which is the very essence of a power of attorney.

In contrast, the other options refer to distinct legal concepts that do not accurately capture the definition of a power of attorney. Ending a trust, specifying fiduciary duties, or being a court order unrelated to the specific authority an individual can grant to another person are important legal elements, but they do not pertain to the function and purpose of a power of attorney. As such, option B is the most accurate and complete definition of a power of attorney.