What legal document allows a person to act on someone else's behalf?

The correct answer, which is Power of Attorney, refers to a legal document that grants one individual the authority to act on behalf of another in legal or financial matters. This document establishes a fiduciary relationship where the person (the attorney-in-fact or agent) can make decisions according to the principal's wishes. The Power of Attorney can be tailored for specific purposes or can be comprehensive, allowing the agent to handle various matters like property transactions, banking, and other legal obligations.

The significance of this document lies in its ability to empower individuals to make decisions and conduct affairs for someone who may be unable to do so themselves due to absence, disability, or other reasons. Its broad applicability in managing aspects of another person's life is what makes it a key legal instrument in estate planning and financial management.

While "Durable Power of Attorney" and "Enduring Power of Attorney" are related concepts, they specifically refer to types of Power of Attorney that remain valid even if the principal becomes incapacitated. However, the generic term "Power of Attorney" encompasses all forms of granting authority, including these durable versions. The healthcare proxy is more limited in scope, allowing an individual to make medical decisions on behalf of someone else, which does not apply broadly to financial or