Signing tax returns, IRS documents, and settling tax disputes. Pursuing legal matters or litigation on behalf of the principal. Collecting benefits from health and other insurances on behalf of the principal. Setting up or amending trust funds. Revoking the power of attorney. Laws covering the power of attorney vary in each state. General power of attorney would include accessing safe deposit boxes, setting up trusts, transferring assets to trust funds, filing tax returns, entering contracts, representing the principal (signor of the document) and buying and selling property. This type of power of attorney would be valid unless specified by the document, the principal dies or revokes the document, or the document specifies that it would end upon the event when the principal gets incapacitated or disabled. As the term implies, limited powers of attorney grant limited and specific control of an attorney-in-fact over the estate of the principal. With such type of power of attorney, a principal can prepare for certain situations without giving full authority to his or her agent. There are various types of limited powers of attorney. Setting up a power of attorney (POA) is one of your options when it comes to managing your daily financial affairs and transactions under certain circumstances such as when you are undergoing medical treatment or out of the country. It refers to a legal document that allows an individual or a financial institution such as a bank to manage your finances whether you are capable or not of doing it on your own. 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. 4. Springing - This legal document is created in such a way that it takes effect only after the principal has become mentally disabled. So what happens when we suddenly figure in an accident? Who will be at hand to take care of our business dealings and other personal issues? Can power of attorney fix things? The lack of an appointed person to take care of the legal matters when one is dying often becomes a problem because no one anticipates this happening.