As the name suggests, health care durable powers of attorney authorize a person, who is called an agent or an attorney-in-fact, to make all the needed choices regarding health care and hospitalization on behalf of the principal. The decisions can be made by the agent once the principal is no longer able to do it for himself or herself. That document must also indicate the particular terms like your preference when it comes to the minimum sale price. A power-of-attorney document can also save you from hassles as well as unnecessary expenses and waste of time in certain situations. Imagine how you can manage all your legal affairs on your own when you are mentally or physically incapacitated because of a serious disease or injury. The lawyer can draft the legal document and inform all the parties involved about the rights and duties stipulated in it. Once the draft is done, the lawyer will keep a copy of the document that will come in handy should legal disputes arise in the future. 7. Sign the document. All the parties, including at least two independent witnesses, must properly sign the form. Because of its seemingly unlimited nature, the general power must be considered thoroughly before it is given to another person. It is advised that this type of power be used sparingly because it is prone to abuse and misuse of power by the agent. 2. Limited - This document, in contrast to the general type, authorizes the agent to make decisions for the principal on particular affairs for a limited time. Collecting benefits from health and other insurances on behalf of the principal. Setting up or amending trust funds. Revoking the power of attorney. Laws covering the power of attorney vary in each state. For example, if the attorney-in-fact is the spouse and they get a divorce, the power of attorney is terminated. 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.