2. By drafting a Power or Attorney, you are giving "donees" legal right to carry out transactions on your behalf. In most areas, you can stipulate powers that you are allocating. Typically, Powers of Attorney include right to sell or purchase real estate and other assets, right to make payments of bills and debts, and right to manage investments of various sorts.

3. Typically you can identify two people to have power of attorney, as well as appointing a substitute in case something happens to one of first two. Some advisors recommend appointing three donees to work jointly in management of your affairs. Ideally, one donee should be a family member or friend who has your best interests at heart. The other should be someone who is connected to business and who is familiar with day to day operations. The third recommended donee is accountant who handles company's books.

4. When drafting document, be very clear what powers you are giving donees. Avoid "gray areas" or areas that could be open to interpretation.

5. Make sure that at least one of your donees knows where Power of Attorney document is kept.

6. In most areas, Powers of Attorney can be Continuing or Limited. Continuing Powers of Attorney usually take effect from date of signing and remain in effect after a person becomes incapacitated. Limited Powers of Attorney give donee authority to act only under certain circumstances. Limited powers could include real estate transactions, complex investments like term deposits, RRSP contributions, and so on.

Although this kind of protection is just catching on in America, it's a proven commodity in Europe, where some 40 percent of population has some type of protection. When there's easy access to good legal advice, people more often settle their problems without a court fight. Your business can have that same security, because you'll know your rights will be protected, whether it's an unfulfilled contract, a defective product, damaged shipment or whatever!

Simply put, a pre-paid legal plan does for attorney bills what an HMO does for doctor bills. The monthly fee -- premium, if you wish -- varies by type of coverage and locality, but is typically less than $1 per day. A small sacrifice for knowledge that you'll receive quality, comprehensive legal services to protect your rights and provide you with peace of mind.