Thus, the power of attorney serves to lift the burden from the executives, allowing them to become more productive. Company lawyers are often sent or subordinates who are trusted to make decisions and sign the contract. Another advantage of a power of attorney is its importance in making healthcare decisions. Also, to avoid problems with abuse in the document, the American Bar Association suggests that list any powers that the principal don t want the agent to have, like altering the principal s will or giving away the principal s property. It may prove to be difficult for the agent to handle everything. In some cases, a co-agent is assigned by the principal to ensure that not all responsibilities would burden one agent. The law usually allows the agent to transfer your assets to your spouse (if your agent is not your spouse). However, the law does not allow him/her to transfer any of your properties to any other individuals, even your children. Always seek the assistance and guidance of your private attorney when making or drafting the content and provisions of your power of attorney. Limited - This document, in contrast to the general type, authorizes the agent to make decisions for the principal on particular affairs for a limited time. That means the authority ends at the period indicated on the document. Just like the previous legal document type, it also ends at the death, mental illness, or disability of the principal. 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. Signing tax returns, IRS documents, and settling tax disputes. Pursuing legal matters or litigation on behalf of the principal. Collecting benefits from health and other insurances on behalf of the principal. Setting up or amending trust funds. Revoking the power of attorney. Laws covering the power of attorney vary in each state.