What is the primary function of a power of attorney?

• A. Distributes assets after death
• B. Sets investment policy
• C. Determines tax brackets
• D. Governs financial and health decisions if the person is incapacitated

Answer: (D)

A power of attorney lets you designate someone you trust to act on your behalf when you’re not able to handle things yourself. The main purpose is to oversee financial matters and health decisions if you’re incapacitated. That means the agent can pay bills, manage bank and investment accounts, sign needed documents, and, in the medical realm, make or authorize healthcare choices as you’ve directed. It’s about acting during incapacity, not about what happens after death. Unlike a will, which only takes effect after you die and controls asset distribution, a POA covers decisions while you’re alive. Some powers can be durable, continuing if you later become incapacitated; others end if you regain capacity or if you revoke them. Without a POA, a court may appoint a guardian to manage your affairs, which can be costly and less private.