Investing and Money Glossary, terms and definitions.

Power of attorney

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.