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One major downfall of a POA is the agent may act in ways or do things that the principal had not intended. There is no direct oversight of the agent's activities by anyone other than you, the principal. This can lend a hand to situations such as elder financial abuse and/or fraud.

Durable Power of Attorney This is the most common type of POA?it gives your agent the power to make decisions relative to some issues if you are incapacitated. It also empowers your agent to act on your behalf in legal matters and other vital matters during a time when you can't be present.

New York's new POA law requires that the principal's signature be notarized in addition to the POA being signed with two witnesses present (note that the notary can be one of your witnesses). New York's old power of attorney law also required POAs to be notarized, but didn't require them to be witnessed.

For most people, the best option is to have a general durable power of attorney because it gives your agent broad powers that will remain in effect if you lose the ability to handle your own finances. An attorney can customize a general POA to limit powers even more?or add powers, Berkley says.

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