Business and Personal Finance Dictionary

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• POWER OF ATTORNEY
  
  A power of attorney is a written document that gives someone the authority to act for you or on your behalf. For example, you may give someone a limited power of attorney to handle your day-to-day finances. Or you may give a person or organization, such as a trust company or IRA custodian, a durable power of attorney to make all decisions for you if you are unable or unavailable to make them. These decisions include choosing a beneficiary for your 401(k) if you have not named one before your death and handling required minimum distributions. A power of attorney must be notarized by a notary public to be legal. It's usually a good idea to consult an attorney to be sure the document you're signing will give the person you're designating the necessary authority to act for you.
  
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