Creation

• A power of attorney is created by a statutorily mandated form that varies by state. The power of attorney indicates the particular situations that an agent may act in.
  
  

Effectiveness

• A power of attorney may be legally effective upon the proper execution by the principal. However, a power of attorney may also be effective upon a contingency. For instance, the power of attorney may not be effective until the principal is incompetent.
  
  

Limitations

• A power of attorney can specify particular acts that an agent may do. For instance, the power of attorney may limit the agent to perform only real estate transactions. However, a power of attorney can also be broad in scope and allow an agent to do most everything the principal could do.
  
  

Signatures

• In order to be effective, the power of attorney must contain the principal's signature. In addition, the signature should be done in front of a notary public who witnesses the signature and provides a notary certification.
  
  

Revocation

• A power of attorney can be revoked by the destruction of the power of attorney instrument, by the execution of a new power of attorney or by the death of the principal.