Powers of Attorney Generally

• A power of attorney exists between the person who grants the power, called a principal, and the person or persons who receives the decision making power, called the agent or attorney-in-fact. As long as you are an adult of sound mind who ensures the power of attorney document meets state requirements, you can grant whatever decision-making rights you wish. Once you grant the agent power of attorney, the agent can make decisions for you and enter you into legally binding agreements.
  
  

Types of Powers

• No single type of power of attorney exists. These documents come in a wide range of forms, granting the agent various kinds of powers. In general, powers of attorney come in two types: health care powers and financial powers. However, even if you're granted financial powers of attorney, that doesn't necessarily mean you have to keep an accounting of how you spend money.
  
  

State Reporting

• While the principal has to ensure that the power of attorney complies with state laws, neither she nor the agent usually have to report the power of attorney or record the document with the state. However, if a power of attorney allows the agent to convey interest in real estate, these documents usually have to be filed with a state agency, typically the register of deeds or county recorder in the county where the real estate is located.
  
  

Fiduciary Duty

• When you're granted financial power of attorney you become a fiduciary. A fiduciary is a person who has a heightened legal duty to someone else; in this case, the agent has a higher duty to the principal. As part of this duty, the agent may have to keep accurate records of all transactions entered into on behalf of the principal. Talk with an attorney in your area if you need legal advice about the legal duties required of an attorney-in-fact.