Power of Attorney Is Easily Accomplished and Can Prevent Hardship : Finances: Arranging for someone to handle your affairs when you’re unable to do so is a prudent procedure.

Keeping track of personal finances prob ably is the least of O.J. Simpson’s worries.

But it does raise the question of what happens to those who find themselves unable to manage their affairs due, for example, to a medical condition, aging, or in Simpson’s case, incarceration on murder charges.

The solution in most instances is to prearrange what’s known as a power of attorney--giving someone else the legal power to act on your behalf.

“It’s a simple document to prepare . . . but it’s a very important part of financial planning,” said Denis Clifford, co-author of “Who Will Handle Your Finances If You Can’t.”

“Unless you’re married, no one else has authority to act on your behalf if you become incapacitated for whatever reason, be it jail, disease, or an accident,” he said, noting that there are even limits to what spouses can do.

A power of attorney contract simply states who will pay bills, cash checks or invest your money and under what circumstances. You don’t need court approval to have one, nor do you need to transfer title of assets.

The contract typically runs about two to four pages and can be quickly drawn up when a will or living trust are prepared, usually as part of a packaged deal.

Done separately the fee is usually less than $100. (For do-it-yourselfers: Clifford’s book, published by Nolo Press in Berkeley, Calif., contains standard forms for each state. Forms also may be available in some office-supply stores.)

A power of attorney can prevent potential complications by assuring that someone trusted is handling your finances in a way you’d prefer, rather than a having a guardian or conservator appointed in a drawn-out, costly court process.

“I’ve seen many horror stories,” said Martin M. Shenkman, a Teaneck, N.J., attorney who advises clients to make provisions for a power of attorney when they make up their will.

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In his book, “The Estate Planning Guide,” he recalls what happened to a widower who never bothered to do that:

“He suffered an unexpected and severe heart attack and was hospitalized for an extended duration. . . . His nearest family could not access his savings, and they didn’t have sufficient funds of their own to meet the expenses of maintaining his home and paying medical bills.

At enormous legal expense, the widower’s family was forced to seek a court-appointed guardian to get access to the widower’s savings.

Merely signing a person’s name to a check or document won’t work, says Clifford, since forgery is illegal. “You may get away with it for awhile, but at some point someone might ask, ‘What happened to Uncle Joe’s money?”’

Wealthy individuals often will give power of attorney to financial advisers or managers.

“I’m sure Simpson already has someone who pays his bills and handles his investments given the size of his estate,” said Shenkman.

The football Hall of Famer has pleaded innocent to charges he murdered his ex-wife and her male friend. He has remained jailed without bail since June 17.

Incarceration doesn’t necessarily prevent individuals from handling their financial affairs, though it can be difficult if their activities are greatly restricted or nearly impossible if assets are frozen.

“It depends on what they’re in jail for,” said Benjamin T. White, an Atlanta lawyer specializing in estate planning.

“I’m sure someone like Michael Milken would continue to have some type of ability to work from jail,” he said, referring to junk bond pioneer Milken, who served time in a minimum-security prison in California for securities fraud.

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There are different types of power of attorney contracts. A standard one can be drawn up to handle specific business only. For instance, a home buyer unable to attend a real estate closing may give power of attorney to a lawyer or a spouse; a couple taking a one-month trip around the world may transfer bill-paying authority to a son or daughter.

A durable power of attorney, on the other hand, remains effective until the death of the person who created it, even if that person becomes incapacitated. Clifford says many people opt for a “springing” durable power of attorney, which becomes effective only when they become disabled. In that case, a doctor would certify in writing that an individual is unable to handle his or her affairs.

Special arrangements also should be made with financial institutions since many banks or brokerage houses require clients fill out their company forms as well, said White.

“If you just take a power of attorney to a bank or a brokerage firm... you will find they they resist it vigorously,” he said.

Shenkman offers additional advice: Make financial records available to your designated guardian, known legally as the attorney-in-fact.