This is very common among executives of corporations especially those in the higher ups, who need to take care of business in all parts of the globe. If they cannot make it to one area, they usually send a representative with a power of attorney to sign their documents for them. In corporations, the grantee or the proxy (the one given the power of attorney) is often an attorney to keep things legal but in truth, anybody can be given a power of attorney, even those who are not lawyers. In contrast, the second type is limited to only a certain kind of financial responsibility. 3. Be wary of the risks involved in granting another person the power to manage your finances. 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. You have to make sure the person you choose is trustworthy. Does the person truly understand your feelings? 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. The document should specify which activities the agent should do. Transactions that are not included in the provisions could not in any way be managed or handled by the person. The healthcare power of attorney designates the agent as a person who should make proper healthcare decisions for you if you get mentally incompetent or unconscious. When choosing the person who would best represent the interest of the principal, it is important to consider several factors. Age. If you are considering your child to be the attorney-in-fact, then you would have to take note of the age. Laws on creating the power of attorney are different on each state. Examples of assets outside the living trust include pension plans, annuities, and IRAs (individual retirement accounts). These assets are managed by the attorney-in-fact designated by the principal who owns the assets. As with a living trust, durable powers of attorney protect the privacy of the principal as well as prevent delays in financial transactions.