What is a legal document empowering one person to act as another person's representative or agent?

The correct answer, Power of Attorney (POA), refers to a legal document that grants one individual the authority to act on behalf of another person in legal, financial, or medical matters. This document establishes a fiduciary relationship, meaning that the agent (the person given power) must act in the best interest of the principal (the person granting power).

A Power of Attorney can be tailored to cover specific transactions or can provide broad authority over various aspects of the principal's affairs. This is important because it allows individuals to plan for situations where they may be unable to make their own decisions, thereby ensuring that their preferences are respected and financial or legal matters are managed appropriately.

In contrast, a Living Will specifically addresses an individual’s preferences regarding medical treatment in circumstances where they are unable to communicate their wishes. An Advance Directive is a broader term that includes Living Wills and other instructions regarding medical care. Lastly, a Trust Document is related to estate planning and outlines how a person's assets will be managed and distributed, but it does not empower one person to act as a representative for another in the same way that a Power of Attorney does.