A person needs a power of attorney to legally authorize someone to take care of financial transactions or make medical decisions for them. Laws prevent people from being able to access bank accounts, engage in financial transactions, or obtain medical records without proper authorization.
Power of attorney forms can be used for a variety of scenarios. They are commonly used with estate planning and amongst business partners. POAs can grant sweeping powers that allow the designated agent to take care of nearly everything, or they can be limited to one specific duty.
There are several types of power of attorney documents. It's recommended to talk with a lawyer to find out which form is needed for your situation. The ones used most frequently are medical, durable, and limited.