A power of attorney is a delegation of authority. An individual (the principal) directs that another (the agent) has the authority to conduct various business endeavors on his behalf. Such a document is extremely useful and belongs in most estate plans, especially where a principal is elderly or has a degenerative disability. Such a principal can provide that the authority survives his incapacity or incompetence.
There is another type of power of attorney called a medical power of attorney or health care proxy. This type belongs in each and every estate plan, and has the effect of delegating health-care decision making to another in the event the principal cannot make decisions for him or herself. Such a delegation is essential to each and every individual.
Note: This content is based upon the law as it exists today in New York State, and that it is general in nature and not designed to specific situations that may have additional facts not contemplated by the author.