For instance, if you are suddenly hospitalized even for a short period and you need to continue your important banking transactions, you need to get a power of attorney and appoint anyone you trust to do errands for you. The agent should just follow your instructions or directions especially if you are still very much capable of making your own decisions. Thus, there would be no confusion. The agent must not be personally involved in any transaction where he or she is representing your interests. For example, he/she must not be a stock investor who would gain more from buying your shares in a company in an inappropriate manner or pricing. The agent should be firm in keeping accurate all records pertaining to all transactions he/she gets into on your behalf. Also, the scope of the power of attorney will also become ineffective when the principal dies or becomes incapacitated, meaning if they suddenly suffer from an illness, physical or mental. Although some countries accept an oral power of attorney, in the United States, the written contract is still important. Entrusting all your assets and personal affairs as a principal is like entrusting your life to your attorney-in-fact. Your agent s decisions regarding your estate will have a direct impact on you, considering the broad freedom granted by general powers of attorney. The agent will decide, for example, where your money and investments will go as well as the kind of nursing home where you will stay. Remember, by creating a POA, you authorize your agent to use your name in carrying out his or her tasks such as preparing and filing tax returns, borrowing money from the bank, and collecting your social security benefits. With a POA in his or her hands, your agent can make financial, health care, and other legal decisions on your behalf. For example, in South Carolina, the preparation for the power of attorney is the same as preparing for a will. In California, notarization in the documents is important but this may not be the case in some states. This is why it is important to have knowledge on legal matters and employ legal assistance when making the document.