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Power of attorney is when you give someone control of your finance. The reasons for giving someone a power of attorney are numerous. For example, I am going traveling for an extended period of time, and will not always have access to the internet, so I am giving someone power of attorney while I am away to help me take care of my finances. Some people who rely on someone else to invest their money for them will likely give them power of attorney to make it easier for them to properly manage their finances. When some people get very old, they will often give one of their children power of attorney as a safety measure in case they should fall ill and be unable to take care of their finance themselves.
There are also many different types of power of attorney, each giving away various levels of control. Limited power of attorney gives a very narrow amount of power over only certain aspects of your finances. This is likely what I will need to use when I go away. Ordinary power of attorney is the most common type, and gives much more widespread control over your financial situation. The most power is given to what is known as durable power of attorney. This gives almost complete control and remains if you become mentally incapacitated (which is not true of most other types).
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