Power Of Attorney And Its Validity Power of attorney can be a tricky thing to do because you are basically giving another person full right to act in your stead in personal and legal matters. This means that the person who you have given the power of attorney to, which is called the agent or the attorney in fact, will have the right to sign legal documents in your name and even have access to your bank accounts, among other things. Durable - It grants the agent the right to act on the principal s behalf even after he or she has become mentally incapacitated. Thus, the agent can make crucial decisions for you when you are unable to do so. The document takes effect right after the principal and attorney-in-fact have signed it, and it ends when the principal dies. For example, if the attorney-in-fact is the spouse and they get a divorce, the power of attorney is terminated. The court may also rule the document to be invalid, especially if the principal is proven to be incompetent when the document was signed. The principal could also revoke it, as long as he is mentally sound. It grants the agent the right to decide on what to do with the principal s remains after his or her death, as well as donate the organs for educational, scientific, or transplant purposes. What if I have not appointed someone as an agent to oversee of my health care, you might ask. 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. Second, that person should have the ability to prudently and effectively manage finances. If not, he/she should be humble and wise enough to seek assistance from experts and professionals to make sure your finances are well managed and handled. To be able to handle and manage your finances better, your agent must always decide to keep his/her own money separate from yours. As a principal, you do not want this to happen, which is why you must choose carefully the powers you are going to give to your agent. You have to decide one or more of the following tasks that your attorney-in-fact will carry out on your behalf from time to time: manage your properties preparing and filing income tax returns making decisions regarding health care do transactions at the bank and pay your bills handle your retirement and insurance benefits collect your social security benefits handle your legal claims You have two options when deciding how much authority you are going to allow to your agent.