A financial power of attorney allows someone you trust to handle your financial matters if you become unable to do so. It is a powerful planning tool that helps protect your finances and ensure your affairs stay on track.

• A financial power of attorney (POA) is a legal document: It authorizes someone else, called your agent or attorney-in-fact, to act on your behalf in financial matters.
• It can be broad or limited in scope: You can grant your agent full authority over all finances or limit their powers to specific tasks like managing investments, selling property, or paying bills.
• You decide when the power begins: Some POAs take effect immediately, while others only activate if you become incapacitated (known as a springing POA).
• Durable powers of attorney remain valid if you become incapacitated: This is key for long-term planning, especially in cases of illness, injury, or cognitive decline.
• You can revoke or change it at any time: As long as you are mentally competent, you can update or cancel your power of attorney by creating a new one and notifying involved parties.
• Choosing the right agent is critical: Your agent should be trustworthy, financially responsible, and willing to act in your best interest. Many people choose a spouse, adult child, or close friend.
• The document must meet state-specific requirements: Rules vary by state, and it often must be signed, witnessed, and sometimes notarized to be legally valid.
• It can help avoid court-appointed guardianship: Without a POA in place, your family may need to go through court to gain control of your finances if you become unable to manage them.
• Your agent can access accounts, sign checks, and manage property: With proper documentation, financial institutions will recognize their authority to act on your behalf.
• POAs do not continue after death: A financial power of attorney only applies while you are alive. After death, your executor or trustee takes over financial responsibilities.

A Financial Power of Attorney (POA) is a legal document that grants a trusted individual the authority to manage your financial affairs on your behalf. This designated person, known as your agent or attorney-in-fact, can handle various financial tasks, ensuring your financial matters are managed according to your wishes.

Knowing that a reliable person is managing your financial affairs can provide peace of mind for you and your loved ones.

Disclaimer: The information provided on this page is for general informational purposes only and should not be considered legal advice. Please consult with a qualified attorney for advice specific to your situation.