A power of attorney is a legal document you can use to give someone else the authority to take specific actions on your behalf, such as signing your checks to pay your bills or selling a particular piece of real estate for you. If a power of attorney is durable, it remains valid and in effect even if you become incapacitated and unable to make decisions for yourself. If a power of attorney document does not explicitly say that the power is durable, it ends if you become incapacitated.

But wait. There is more. There are two kinds of durable powers of attorney: a durable power of attorney for finances lets you name someone to manage your financial affairs if you become incapacitated, and a durable power of attorney for health care allows someone to make medical decisions for you if you are no longer able to speak for yourself. Preparing these two documents, along with a health care directive -- more commonly known as a living will -- that sets out your wishes for medical care, ensures that your health and financial matters will stay in the hands of trusted people you choose.