You still need one even if you already have drafted a living will. Medical powers of attorney and living wills are two different legal documents. The former merely authorizes a person to make important medical care decisions such as those regarding use of life support when the principal is mentally incapable of doing this for himself or herself. Your general options are the general and limited powers of attorney. The first type grants an attorney-in-fact an unlimited control over your finances or health care without a predetermined period. In contrast, the second type is limited to only a certain kind of financial responsibility. 3. Be wary of the risks involved in granting another person the power to manage your finances. For this power of attorney to take effect there has to be a genuine certification from a doctor to prove the incompetence. In every power of attorney you would get into, it is always important to make sure you are choosing and agent or an attorney-in-fact who is very trustworthy and reliable. He/She should be able to uphold only your best interest when doing transactions and making decisions on your behalf. It covers all kinds of transactions. The validity of the agreement or the contract will of course be stated on the document. The special power of attorney on the other hand only gives an agent the authority to act specific matters. For instance, you can authorize an agent to sign a business contract for you but only that business contract and no other documents. This type of power of attorney would be valid unless specified by the document, the principal dies or revokes the document, or the document specifies that it would end upon the event when the principal gets incapacitated or disabled. Specific power of attorney If the attorney-in-fact is only granted authority over specific transactions like collecting debts, buying and selling property, then it is referred to as the specific power of attorney. If nobody has powers of attorney to act on your behalf and you are already unconscious or mentally incapable, the courts will assign someone to make health care decisions for you. The second type of durable powers of attorney is financial in nature. It is defined as the full legal authority given to another individual to be responsible for all your finance-related affairs, including filing income tax returns and paying the bills.