What is the purpose of a Power of Attorney (POA)?

The purpose of a Power of Attorney (POA) is to authorize an agent to act on behalf of another person in legal or financial matters. This legal document allows the designated agent to make decisions and perform transactions for the individual who grants the POA, known as the principal. It can be crucial in situations where the principal is unable to handle their affairs due to illness, absence, or incapacity, enabling the agent to manage the principal's interests effectively.

While other options refer to legal or contractual actions, they do not capture the core function of a POA, which is specifically about granting authority to another individual to act on one's behalf. For instance, establishing a lien involves creating a legal claim on a property, executing a contract pertains to the formal agreement between parties, and completing a pre-sentence investigation is related to legal sentencing procedures, none of which serve the same purpose as a Power of Attorney.