A Power of Attorney is a document whereby you appoint another person to act in your stead for all things financial. Without this document, a court would need to appoint a conservator should something happen to you that would render you incapable of handling your own affairs.

Most states have a statutory Power of Attorney. While most of these are very similar, there may be subtle differences in either execution on in certain powers. As for execution, you probably will need to have your signature notarized. Some states require you to have your attorney-in-fact sign the document and have the signature notarized, as well. A few states require that the documetn be filed with the state or county before it will be recognized.

As for powers, most of the powers are routine and standard. The few areas you will need to review are in the area of gifting and dealing with testamentary documents. In most cases, you will need to specifically allow gifting to occur, and then specify to whom and in what amounts. A couple of states may have more stringent requirements to allow gifts over a certain dollar amount. As for testamentary documents, you can grant limited authority to change certain parts of either a Will or a Revocable Living Trust. In these instances, you should be sure that the power does not affect your plan of distribution. The power should only allow changes in administrative situations and then should provide some type of check to make sure the power is not abused.