A power of attorney is a written, legal document signed by the principal giving legal authority to another person to handle the legal and financial affairs of the signor of the document.  For example with a valid power of attorney, the agent-in-fact could sign papers, checks, title documents, handle bank accounts, sign contracts, on behalf the principal, assuming those powers are spelled out in the document.

One of the problems with many do-it-yourself powers of attorney that you buy off the internet, such as legalzoom, willmaker, etc, is that the specific powers are not enumerated.  For example, if there is no power to handle taxes or work with the IRS in the power of attorney, then an agent-in-fact would not be able to sign tax returns for the principal.

There are two types of power of attorney typically used in Michigan.  There is a general durable power of attorney and a springing power of attorney.  A general durable power of attorney is effective immediately upon signing, while a springing power of attorney is only effective upon the principal being deemed incapacitated.  Typically to be deemed incapacitated two licensed physicians must sign off agreeing that the principal is incapacitated.  There are pros and cons to using either type of power of attorney.  As Michigan estate planning lawyers we walk our clients through the decision.