A power of attorney is a legal document that gives someone else the authority to make decisions on your behalf. This can include making financial decisions, managing your property, and making medical decisions, among other things. The person who is given this authority is known as the "attorney-in-fact" or "agent."
While a power of attorney is powerful in that it allows someone else to make decisions on your behalf, it is still limited by the principle of fiduciary responsibility. This means that the person who holds the power of attorney is legally required to act in your best interests and to handle your affairs responsibly and with care.
This means that the person with power of attorney must use your assets only for your benefit and cannot use them for their own gain. They must also avoid conflicts of interest and disclose any potential conflicts to you. If the person with power of attorney fails to fulfill their fiduciary responsibility, they may be held legally responsible for any losses or damages that result.
