A power of attorney is a legal document whereby a grantor appoints one or more people to manage their property when they can’t do it themselves. That means, the appointed person has the power to do anything that the grantor may lawfully have done, when capable, including sell land, change investments, pay bills for the grantor, etc.
A trust can be very useful to a farm business. It can offer both flexibility and formality to help achieve business, tax planning and farm legacy preservation goals.
The challenge is that trust law, and the associated tax rules, are very complex. Proper implementation requires a team of professional advisors.