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A power of attorney is a legal document where the Principal gives legal authority to an Agent to act on behalf of the principal. The Principal is the person who creates the power of attorney and the agent is the person named to make the decisions.  A power of attorney may be used to give the agent the right to access bank accounts, sign contracts, handle financial transactions, or sign documents for the principal. Additionally, a power of attorney can create a trust on behalf of the Principal or make gifts.

There are 3 types of power of attorney: Limited, General, and Durable. A Limited power of attorney gives the agent authority to conduct a specific act, like selling a home. A general power of attorney gives the agent very broad powers. A durable power of attorney allows a power of attorney to continue if the principal becomes incapacitated.