As mentioned, there is a requirement by law for you to fully understand what you are getting into for the document to take full effect. It is advisable that you make a power of attorney even if you do not feel any illness or you do not expect any event that would incapacitate your mental state. It is always ideal to be prepared. When they fall ill, become physically or mentally incapacitated, some power of attorney agreements are honored provided that they have the provision that the contract will still be valid when these things happen. Otherwise, they will also become void. It is also assumed that the agent will be completely honest and truthful with his business dealings in representing the principal. Power of Attorney: A Brief Overview The power of attorney may seem like a legal jargon that only those who are well-versed in the technicalities of the law could understand. That is usually the case if you have encountered this term for the first time. However, nothing is complex or incomprehensible about it. 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. It is more recommended that you do so especially if the document would involve your properties, savings, and income. What are the Different Types of Power of Attorney? You will never know what to expect in the future, so it pays to prepare everything before the going gets tough. That includes planning how to and who will handle your finances, business, and other personal matters should you become unable to do so. This is where the power of attorney comes in. This means that the agent enjoys the same amount of privileges and access to the assets of the principal. For example, the agent can have access to the safety deposit box of the principal and transfer sales or investments, among other powers. Entrusting all your assets and personal affairs as a principal is like entrusting your life to your attorney-in-fact.