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. He/She should know you well so as to understand your own points of view and opinions. If you think that person really understands your feelings, you could be sure he/she would follow and stick to your personal wishes if ever you get incapacitated. Would the person be willing to spend time to handle your affairs? The principal may not be able to monitor how transactions are made and eventually caused the agent to misuse his or her finances. When identifying the person who would represent the interest of the principal, it is important to determine a person who is trustworthy and would not betray the interest of the principal. It is important to consider an agent that has the ability to manage the principal s property and legal matters. The agent is showing problems with managing their own finances, then it may not be a good idea to trust your own finances to them. Work experience. It may be important to choose an agent or an attorney-in-fact that has experience or level of expertise in finances or in legal matters. 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. While it is much easier to put off getting a power of attorney than to create one, you should not take any chances. Before it is too late, you have to designate a trusted person to act and make decisions on your behalf. Should you wait until you become mentally or physically disabled and regret later for not doing it earlier?