There are many scenarios and situations in which a power of attorney is needed. Of course, first of all, you want to make sure, in most instances, that it's a REVOCABLE power of attorney. That means, you can withdraw the authorization for another to take care of business, or health issues, or sign documents for you.
The power of attorney is part of many health issues. In this case, you may, while still healthy and mentally competent, pre-authorize a trusted friend, relative, or other agent, to make healthcare decisions for you in case you become incapacitated due to injury or illness, or age, for example, in the case of Alzheimer's or dementia.
On that point, you might want to look into preparing a living will.
In other situations, such as a land or other real estate purchase or sale, you may want to create a power of attorney authorizing a representative to act in your behalf, for example if the closing on a house were going to take place when the owner needed to be out of town.
Sometimes we have personal business that needs to be handled, documents which need to be signed, and other actions we cannot be present for. At that time a power of attorney can authorize a trusted individual to sign or act for us.
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