A power of attorney is a good tool to have in your estate plan. It can be beneficial if you cannot act on your own behalf because it allows someone you appoint to do so.
The person you appoint is the agent. This person has a lot of power, but it is not unlimited.
You will decide exactly what your agent can and cannot do. You can specify that he or she acts on your behalf only in certain situations, such as making a financial deal. You can also give broad powers to handle all of your needs and business. In any case, you set the stipulations.
Outside of what you specify, the legal status of a power of attorney also gives your agent other duties he or she can and cannot do.
Your agent cannot take complete control over your assets and assume them as his or her own. Agents only have the powers you assign. It is illegal for them to use your assets for personal gain.
An agent is able to create some legally binding financial tools, such as a trust. But he or she cannot mess with your will or try to create a new one for you.
The power of attorney does not grant someone else ultimate power over you and your finances. It has limitations that you can set or that the law sets. The agent has a lot of responsibility, so you should choose this person carefully. It is also essential to create the power of attorney to protect yourself from an overzealous agent.