For example, he/she must not be a stock investor who would gain more from buying your shares in a company in an inappropriate manner or pricing. The agent should be firm in keeping accurate all records pertaining to all transactions he/she gets into on your behalf. You could have the option not to include specifications or instructions that would give your agent the permission to transfer to himself/herself any of your property or bank account. This is why it is important to have knowledge on legal matters and employ legal assistance when making the document. A possible problem with the durable power of attorney is that the principal may not want the attorney-in-fact to take specific liberties. The principal could specify in the document what specific decisions the durable power of attorney can make. Your agent s decisions regarding your estate will have a direct impact on you, considering the broad freedom granted by general powers of attorney. The agent will decide, for example, where your money and investments will go as well as the kind of nursing home where you will stay. Simply put, your attorney-in-fact will be in charge of everything that concerns your life as soon as you become mentally incapacitated. 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. What Power of Attorney Is Have you heard about Power of Attorney ? Why do people have it? You may not know it now, but it could be what you need today. To begin with, the power of attorney is a legally effective document that states your agreement to give somebody else (a relative, a friend, or an employee) an authority to make special decisions or to do several things on your behalf. The laws regarding power of attorney vary from one state to another. However, a number of guidelines are common among states, and these rules must be strictly observed by both the principal and the agent. For example, two legal requirements must be met. First, the agent must not be mentally disabled and is not easily influenced by others.