What does a Power of Attorney (POA) allow an authorized person to do?

A Power of Attorney (POA) is a legal document that grants authority to an authorized individual, often referred to as the agent or attorney-in-fact, to act on behalf of the donor (the person granting the authority). The key aspect of a POA is that it allows the designated person to manage the donor's affairs in various matters, including financial, legal, and sometimes healthcare decisions, depending on the specific terms laid out in the document.

The correct option highlights that the agent can act on behalf of the donor, which encompasses a broad range of responsibilities and powers specified in the POA. This could include making transactions, signing documents, or handling investments, allowing the agent to effectively manage the donor's interests when the donor is unable to do so themselves.

While a POA can provide authority to enter into contracts, it is the broader ability to act on behalf of the donor that is most representative of what a POA entails. Some powers may be explicitly stated, while others are implied, as long as they align with the donor's wishes and the limitations defined within the POA.

The other choices are narrower in scope or incorrect, such as limiting the actions strictly to medical decisions, which only applies to a healthcare POA, or