Which term describes a written authorization to act on someone else's behalf for financial purposes?

Which term describes a written authorization to act on someone else's behalf for financial purposes?

• A. Power of attorney (POA)
• B. Standing
• C. Reform
• D. Augmented estate

Answer: (A)

A power of attorney is a written instrument that authorizes someone else (the agent) to handle financial matters for the principal. This can include paying bills, managing bank accounts, paying taxes, and making investments. The scope can be broad or limited, and it can be durable (continuing if the principal becomes incapacitated) or non-durable (ending if capacity is lost). The authority takes effect during the principal’s lifetime and usually ends when the principal dies, at which point the estate is managed by an executor or administrator. Standing is not about authorizing another person to act; it refers to the right to sue or participate in a case. Reform and augmented estate are unrelated terms in this context: reform concerns changes in law or policy, and augmented estate relates to specific probate or marital-property calculations, not to granting financial powers to another person.

A power of attorney is a written instrument that authorizes someone else (the agent) to handle financial matters for the principal. This can include paying bills, managing bank accounts, paying taxes, and making investments. The scope can be broad or limited, and it can be durable (continuing if the principal becomes incapacitated) or non-durable (ending if capacity is lost). The authority takes effect during the principal’s lifetime and usually ends when the principal dies, at which point the estate is managed by an executor or administrator.

Standing is not about authorizing another person to act; it refers to the right to sue or participate in a case. Reform and augmented estate are unrelated terms in this context: reform concerns changes in law or policy, and augmented estate relates to specific probate or marital-property calculations, not to granting financial powers to another person.