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A limited power of attorney is a legal document that enables someone to act on your behalf in specific situations. It is especially useful for individuals who may be abroad during important transactions or prefer not to handle every financial decision. This tool has defined limitations, including a specified duration, which the principal (the person granting authority) can dictate. The agent (the person receiving authority) can perform tasks like signing documents but does not need to be a legal professional. It is essential to understand these constraints when creating a limited power of attorney to ensure it meets the principal’s needs effectively.