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. The following are the essential considerations that you need to think about when creating a financial power-of-attorney document: 1. This is especially true with people who are gravely injured and cannot make decisions for themselves like for instance when they are under comatose or when they cannot speak, move or are invalid. Power of attorney is one of the ways that you can appoint a representative for you should something happen to you. It may be general or special, which is limited to only one type of dealing or issue. It all depends on the principal. There is also the scope of the power of attorney. Often, it only takes effect within a certain period of time. As mentioned before, it will not be valid when the principal dies or falls ill unless it is stated in the contract that the power of attorney will continue when illness occurs. Your agent will only follow your orders, so long as you are mentally capable of making decisions for yourself. The agent also takes charge of keeping and organizing records of all transactions he or she made on your behalf. As the principal, you have the power to decide the amount of authority you will grant to your agent. Does the person know about handling finances? You are entrusting your money and assets to the person. It is important that you appoint an agent who is well skilled and knowledgeable in handling and managing finances. If he/she is not, at least he/she should be willing to seek appropriate help from the experts. 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. Since the power of attorney would provide the agent the control over banking, credit and other financial issues, it is important to be made carefully which is why legal assistance is importance.