A more thorough explanation:

A power of attorney is a legal agreement between two parties: the principal and the attorney in fact. The attorney in fact does not have to be a lawyer. The agreement gives the attorney in fact the right to act on behalf of the principal.

There are different types of powers of attorney. They can be general, limited, or special. They can be written or oral, depending on the jurisdiction. Some places have specific requirements for the form and content of the agreement.

Usually, a power of attorney is only valid while the principal is alive and able to make decisions. However, a durable power of attorney can continue even if the principal becomes incapacitated.

Example 1: John is going on a long trip and wants his sister to be able to handle his finances while he is away. He creates a power of attorney that gives his sister the authority to access his bank accounts and pay his bills. This is an example of a limited power of attorney.

Example 2: Mary has been diagnosed with a serious illness and wants to make sure her husband can make medical decisions for her if she becomes unable to do so. She creates a durable power of attorney that gives her husband the authority to make medical decisions on her behalf. This power of attorney will remain in effect even if Mary becomes incapacitated.

These examples illustrate how a power of attorney can be used to give someone else the authority to act on your behalf. It is important to carefully consider who you choose as your attorney in fact and what powers you give them.