Kevin Weigand and A.K. Moody published "Navigating the Agent’s Power to Gift Under Power of Attorney (POA)" in Virginia Business. The following is an excerpt:
A power of attorney "POA" is a document that appoints another — known as the "attorney-in-fact" or "gent" — to act in the principal’s place for business, financial, legal, or other purposes, often when the principal cannot do so on his or her own behalf. There are various types of POAs, and the terms and scope of an agent’s authority, like contracts, are defined in the POA. Generally, an agent must act: (1) in the principal’s best interest; (2) in good faith; and (3) only within the scope of authority granted in the POA.