Power of attorney allows a third party, known as the attorney-in-fact or the agent, to make financial, legal and sometimes health decisions on someone's behalf.

Having a power of attorney ensures that you choose someone to act for you when you are unable to handle your affairs. Without one, the courts will decide.

When your kids turn 18 years old, make sure they sign a power of attorney. Here's why you need one, especially if your kid's heading to college.

You can also find power-of-attorney forms on do-it-yourself websites such as LegalZoom, Nolo and Rocket Lawyer. You’ll pay about $40 to create the forms online.

A limited power of attorney is quite the opposite. It gives the agent the authority to act on your behalf in specific matters and may only be in effect for a certain period of time. In most cases ...