For instance, you can authorize an agent to sign a business contract for you but only that business contract and no other documents. Some are also given a section, for instance, a special power of attorney to look into the financial matters and to manage it and sign documents pertaining only to financials. It is usually used to enable your appointed agent the power to handle your important transactions within a specified period when you are practically unable to do them personally. The special power of attorney provides your agent specific powers. You would decide on those specifics. Unlike the general power of attorney, the special power attorney does not give the agent a broad range of coverage. You have to decide one or more of the following tasks that your attorney-in-fact will carry out on your behalf from time to time: manage your properties preparing and filing income tax returns making decisions regarding health care do transactions at the bank and pay your bills handle your retirement and insurance benefits collect your social security benefits handle your legal claims You have two options when deciding how much authority you are going to allow to your agent. You can grant a medical, health care, or both types of powers of attorney to secure your future as well as your health and assets. Medical powers of attorney particularly involve medical care decisions that agents make for their principals. You still need one even if you already have drafted a living will. The person entrusted with this power/ authority is called the agent or attorney-in-fact while the person who signed the document is the principal. The power of attorney is usually used to handle financial or business affairs when the principal is not available or incapacitated. There are power of attorney documents which allow the agent to continue being authority even the principal is no longer mentally capable. 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.