In case you become physically or mentally incapacitated, how could you possibly pay your bills and mortgages or conduct transactions at the bank? Imagine your home getting foreclosed because you are physically unable to pay off your home loan while you were undergoing medical treatment in a hospital. In general, a principal can choose from four types of powers that he or she can give to his or her agent (also called the attorney-in-fact). The right type to choose depends on the extent of power you want to bestow on your agent. It also depends on when you prefer to start appointing such power to your agent as well as when you want the power terminated. The power of attorney is a legal document that authorizes a person or organization to act on financial and business matters affairs of a person referred to as the principal. The person or organization that receives authority is called the agent or the attorney-in-fact. The durable power of attorney is called such, since the attorney-in-fact would continue to have authority and act on behalf of the principal, even if the principal becomes incapacitated. You will need these details when you consult with a lawyer who will decide the right type of POA to use in your case. 5. Include all your assets and liabilities in your document. Make sure that your power-of-attorney form properly documents all the necessary information that can guide your agent in making the right legal decisions for you. Granting someone a legal authority to decide on your behalf does not necessarily mean you cannot make decisions for your own anymore. It only means that at the same time, another person can also make choices for you so you are sharing the right to decide with your agent. For example, if you are on a business trip abroad, you can designate someone to pay your bills or do bank transactions on your behalf. There is also what they call the Psychiatric Advance Directives, which gives the grantee the right to decide for the care and treatment of someone who is mentally ill. Sometimes, this is appointed by the parents or by the courts, depending on who had guardianship on the person. Anytime, the power of attorney given to a person can be revoked regardless of the specified period stated in the document.