What and why?

I am not a lawyer and would first recommend that you seek legal advice to ensure that this document is properly drafted and sets in place the powers and restrictions that meets your wishes.  A power of attorney is a document providing powers generally that you hold relating to financial decisions and delegates this authority, under stipulated circumstances, including becoming mentally incapable, to your designated power of attorney.

Why do you need a power of attorney and should you prepare one?

This is a document that generally is only invoked in a serious situation such as your disability or inability to act.   Imagine being admitted to hospital with a malady?  Your primary focus should be on your health recovery and you can feel some comfort that your business is in the hands of your designated and trusted power of attorney.

What does all this have to do with succession?  It is imperative that financial decisions, such as the ability to write cheques or make other financial decisions, continue so that the enterprise can continue to operate, in the event that you are not able to make such decisions.

Learn, think, apply.