What does a power of attorney allow one person to do?

A power of attorney is a legal document that grants one individual the authority to make decisions on behalf of another in various legal or financial matters. This delegation of authority can encompass a broad range of actions, such as managing investments, accessing bank accounts, signing contracts, and making healthcare decisions.

Power of attorney is particularly significant when the individual granting the authority is unable to handle their own affairs due to reasons like incapacity, illness, or absence. This legal arrangement ensures that someone trusted can step in and manage those important matters in the best interest of the person who created the document.

In contrast, acting as a witness in legal matters does not involve decision-making authority or the ability to act on behalf of another. Making decisions in compliance with the ward’s family might suggest an obligation to conform to family wishes but does not encompass the full range of autonomy and authority that a power of attorney provides. Serving as a mediator in disputes involves a role focused on facilitating dialogue between parties but does not imply the legal authority to act on behalf of someone else. These distinctions clarify why the correct answer centers on the authoritative aspect of representation in legal and financial matters granted by a power of attorney.