What does a power of attorney allow one person to do?

A power of attorney is a legal document that allows one person, known as the agent or attorney-in-fact, to make decisions on behalf of another person, who is referred to as the principal. The essence of a power of attorney is to grant authority for specific actions, which can include a wide range of legal decisions regarding financial matters, healthcare, property, and other personal affairs.

When the correct answer indicates that a power of attorney allows one to make legal decisions on behalf of another, it captures the fundamental purpose of the document. The agent can act in the best interests of the principal and can engage in various tasks such as signing contracts, managing real estate transactions, or making healthcare decisions, depending on the specific powers enumerated in the document.

The other choices reflect specific applications or scenarios that might be covered under the general authority provided by a power of attorney, but they do not encapsulate the broader authority for legal decision-making that the power of attorney inherently provides. For instance, controlling financial assets or negotiating loan terms could be part of the actions taken under a power of attorney, but this document fundamentally establishes the agent's authority to make legal decisions overall.