Power of attorney is an agreement granting one person the legal authority to manage the financial affairs of another person. Financial Powers of Attorney documents are often obtained together with a Will and a Living Will.  A Durable Financial Power of Attorney is effective the moment it is signed and the agent need not wait until the Grantor is incapacitated to act on behalf of the Grantor.  This is frequently used between spouses and between an older parent and a child.  A traditional Financial Power of Attorney is effective only when it can be proven that the Grantor is incapacitated; this is something that is not always easy to prove.  A traditional Financial Power of Attorney is more common amongst more distant relatives or between friends.