An Insight On The Different Types Of Power Of Attorney There are different types of power of attorney. These are meant to ensure that the needs of the principal is properly addressed and provided for. When preparing or creating a power of attorney, it is important to get lawyer assistance. They would be able to help you identify what type of power of attorney would be best suitable for your needs. As a principal, you need to find your agent or attorney-in-fact. He or she does not need to be a lawyer. The agent could be just about anyone. However, you need to be very careful when choosing an agent for your power of attorney. The agent you would designate for your power of attorney would assume specific responsibilities and duties. 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. The person you appoint may be a family member, a relative, or a friend whom you are confident enough to make the best choices for you, especially when it comes to decisions regarding your health and finances. If you designate someone whom you trust as your agent, you can have peace of mind that the person can make decisions for you according to your best interest. The power of attorney is a legal document that would enable you to grant a person or organization control over your financial and business matters. The person who is signing or creating the power of attorney is called the principal, while the person who would be awarded with authority is called the attorney-in-fact or the agent. These assets are managed by the attorney-in-fact designated by the principal who owns the assets. As with a living trust, durable powers of attorney protect the privacy of the principal as well as prevent delays in financial transactions. It pays to plan your estate before you become unable to manage things by yourself.