Today, you are in complete control of your life. That’s why it’s hard to understand that someday you may need someone else to make decisions for you.
A power of attorney is a written document where you (the principal) appoint someone (called the agent or attorney-in-fact) to handle your affairs if you can’t take care of things yourself. Even if you have a will, you should still choose a power of attorney since the will’s executor doesn’t gain power until your death.

Your agent will be making important decisions on your behalf so he should be someone you trust. Many people select their spouse and designate a child or other relative as a substitute. Pick another person if your spouse will be unable to handle everything because of an illness or the inability to manage finances.

There are a few different types of power of attorney, according to the American Association of Retired Persons (AARP). They differ on when they start and end. These types include:

• Conventional power of attorney – begins when you sign it and continues until you become mentally incapacitated
• Durable power of attorney – begins when you sign it and is effective for life until you cancel it
• Springing power of attorney – begins when a specific event happens (such as incapacitation)

   You can give your agent as much power as you want. Let he or she sell your car, manage real estate, sell stocks or sign your income tax return. When designating power of attorney, it makes the most sense to give your agent a range of powers so he or she will be allowed to take care of everything for you — even things you haven’t thought about. Note that all powers of attorney end at your death, meaning that the agent can’t make any decisions after your death.
The best way to prepare your power of attorney is through your lawyer. Without a power of attorney, your family may have to go to court to appoint a guardian.