Naming a power of attorney brings convenience and peace of mind to you as the principal since you know there is someone you can trust to handle your assets and estates. However, there are some risks involved. For instance, the individual you appoint may misuse his or her power. This can include engaging in actions that are contrary to the power of attorney agreement or conducting unauthorized transactions. Nonetheless, there is little oversight since the power of attorney is governed by a contract. Lastly, a power of attorney is only valid for as long as the principal is alive. Once the principal passes away, the power of attorney does not handle the estates and affairs of the deceased.