The person who is signing or creating the power of attorney is called the principal, while the person who would be awarded with authority is called the attorney-in-fact or the agent. Since the power of attorney would provide the agent the control over banking, credit and other financial issues, it is important to be made carefully which is why legal assistance is importance. In corporations, the grantee or the proxy (the one given the power of attorney) is often an attorney to keep things legal but in truth, anybody can be given a power of attorney, even those who are not lawyers. In fact, this is why proxies like these are often called attorney in fact to differentiate them from attorney at law. Before we can discuss the advantages and disadvantages of using a power of attorney, you must first understand that exactly is the concept. Power of attorney is a document that gives people the authority to act on another person s behalf for a specific period and matter depending on what is stated on the paper. Important Considerations When Creating a Financial Power of Attorney What are the ways to put your finances in order when time comes you are unable to do so? Setting up a power of attorney (POA) is one of your options when it comes to managing your daily financial affairs and transactions under certain circumstances such as when you are undergoing medical treatment or out of the country. Younger people who have had an accident or are suffering from a health problem that renders them unconscious can also use these powers of attorney. In any case, you can choose a person who you trust the most to decide on your behalf according to the available information at that time. That person who you assign as your agent must perform whatever you require even if it runs contrary to his or her own wishes for you. Some will be stating a specific period of time while others will be point to more specific business dealings. For instance, a power of attorney may be granted to sign a business deal with Conglomerate X but will not be effective when signing deals with Conglomerate Y even if they are signed on the same day.