A Power of Attorney enables you to appoint someone to act on your behalf during your lifetime regarding financial matters. Many people appoint their spouse or another trusted family member to serve as their "agent." Frequently, one or more alternate agents are named. These documents prove particularly useful if you become incapacitated. The Texas Legislature has created a form known as a Statutory Durable Power of Attorney. That instrument, under the heading of "Special Instructions," allows you to empower your agent to make gifts on your behalf. Without this specific authorization, the IRS takes the position that no gifts can be made on your behalf if you are incapacitated. The form also allows you to choose an effective date for the Power of Attorney. By marking out the provision labeled "A" the Power of Attorney is effective only upon your disability. Most married couples cross out "B" (or leave the form as is), making their Powers of Attorney effective immediately (and, therefore, not limiting use of the Power of Attorney only to time periods when the spouse is mentally incapacitated).