A power of attorney is a document that allows you to designate another person to sign your name for you if you are unable to do so yourself. Powers of attorney can be general, allowing the person you have designated to do just about anything, or they can be limited to specific tasks you think your agent should be allowed to address. Powers of attorney should not be confused with medical powers of attorney, which deal exclusively with medical decisions. With a medical power of attorney, you can designate one or more individuals to make medical decisions for you in the event you are unable to do so yourself. Powers of appointment.
People often confuse powers of attorney with powers of appointment.
Without getting into all the legal and tax implications of a power of appointment, it typically allows the beneficiary of a trust to redirect where the trust goes. Sometimes, the trust allows the beneficiary wide latitude in deciding who may benefit from the trust. Other times, the beneficiary is limited to making only certain types of distributions to a narrow class of people.