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Finance Dictionary and Glossary of Investment Terms
Power of attorney
A written authorization allowing a person to perform certain acts on behalf of another, such as moving of assets between accounts or trading for a person's benefit.
A legal document that enables an individual to designate another person, called the attorney in fact, to act on his/her behalf as long as the individual does not become disabled or incapacitated.
A document authorized by a person, called the principal, that grants legal authority to another person, the agent, to act on behalf of the principal. A power of attorney could authorize the agent to write checks, sell property, file tax returns, etc. Under a “durable” power of attorney, the principal authorizes the agent to make decisions (including health care decisions) on his or her behalf in the event the principal is incapacitated.
Giving someone the ability to act on your behalf in specific instances.