What is the primary role of a durable power of attorney in financial decision-making?

The primary role of a durable power of attorney in financial decision-making is to authorize another person to act on one's behalf. This legal document allows an individual (the principal) to designate another person (the agent or attorney-in-fact) to manage their financial affairs and make decisions regarding their assets, bills, and other financial matters in case they become incapacitated or unable to make decisions themselves. By granting this power, the principal ensures that their financial responsibilities are handled according to their wishes, even when they are not in a position to manage them personally.

The other choices—managing investments, creating wills, and facilitating healthcare decisions—do not encompass the full scope of what a durable power of attorney achieves. While a power of attorney can enable an agent to manage investments and may indirectly influence aspects of estate planning, its core function is primarily about granting the authority to act on behalf of another in financial matters. Creating wills and making healthcare decisions typically require different legal arrangements and documents, such as a last will and testament or a healthcare power of attorney, respectively.