You, the principal, grant someone else, your attorney-in-fact or agent, the power to act in your name. The term attorney-in-fact means whomever you appoint to act on your behalf under the power of attorney. The power of attorney spells out the specific powers that you grant to your attorney-in-fact. The powers might be very limited, such as granting someone the power to sell your car while you are overseas. This is known as a limited power of attorney. The powers might be very broad, such as the power to buy and sell your property, lend and borrow money in your name, start and settle lawsuits, and so forth.

With few exceptions (e.g., power to vote in elections, power to get married), a principal can grant very broad powers to an attorney-in-fact. This is known as a general power of attorney.

Normally the attorney-in-fact can exercise a power only if the principal is capable of exercising the same power. This rule prevents an attorney-in-fact from acting when the principal is incapacitated. For example, a principal in a coma is unable to sign a contract, so the attorney-in-fact is unable to sign a contract for the principal. However, when a power of attorney is made durable, this obstacle is overcome. By placing some very specific language in the power of attorney, making it durable, the attorney-in-fact is enabled to exercise the powers granted by the principal even after the principal becomes disabled.

Power of Attorney Ends at Death
Durable or not, all powers of attorney terminate on the death of the principal. For example, if Mom grants you a durable power of attorney to handle her bills, at the moment of her death your power terminates. You can no longer write checks on Mom's account under the durable power of attorney.

Revoking a Power of Attorney
You can also revoke the power during your life. To revoke your power of attorney, you notify your attorney-in-fact in writing that the power of attorney is revoked. It is also a good idea to notify any person or institution where your attorney-in-fact has used your power of attorney that the power of attorney has been revoked. You can also revoke a power of attorney by specifying in the document itself that it expires on a certain date.

Springing Power of Attorney
Powers of attorney can be written to "spring" into effect at a predetermined time or event (usually when you become disabled). This is known as springing power of attorney. A springing power of attorney that goes into effect upon your disability prevents your attorney-in-fact from using the powers while you are able to exercise them yourself.

One large difficulty is that your attorney-in-fact has to be able to prove to the person or institution where the powers are being used that you are, in fact, disabled and unable to act. This would normally be accomplished with a statement from your attending physician that you are disabled.

The problem that arises is that when the physician's statement is several days old, the question may be raised whether you are still disabled, requiring a "fresh" statement from the physician.

'Effective Immediately' Power of Attorney
A power of attorney may also be written to be effective immediately when signed, without requiring that you be determined incompetent. This type of power of attorney would likely be appropriate if you were being deployed overseas and would be unavailable for an extended time to handle your financial affairs. Many JAG officers routinely write immediately effective durable powers of attorney that expire in one year. While that may be appropriate, you should consider that your deployment may be extended. Or, if you were injured and incompetent or missing when the power of attorney expired, you would not be able to renew the document and your attorney-in- fact would have to obtain court approval to continue managing your affairs.

Medical Powers
A durable power of attorney also may be used to grant your attorney-in-fact the power to make medical decisions in case of your disability. Many people choose to have one power of attorney for financial and business affairs and a second one exclusively for medical care, even if they are appointing the same attorney-in-fact in both documents.

Choosing Your Attorney-In-Fact
Your designated attorney-in-fact should be someone you trust completely, and someone who understands how you handle your business affairs. Remember, a financial durable general power of attorney is like handing someone a blank check to all of your assets. An attorney-in-fact is a fiduciary. This means that the attorney-in-fact must manage your assets for your benefit—not their own. The person you name will be called upon to act under difficult circumstances. Your disability may be sudden, catching everyone by surprise, and may last for an extended period of time. However, with the power of attorney in place, you and your representative will be better prepared to address your financial