Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
A financial power of attorney (POA) is an essential legal document that individuals should consider obtaining in various circumstances. This powerful tool allows a designated agent to manage financial affairs on behalf of the principal (the person granting the power). There are several situations in which having a financial power of attorney can be particularly beneficial or necessary:
One of the primary reasons to establish a financial POA is in preparation for potential incapacity. As individuals age or face health challenges, there is a risk of becoming unable to manage their own financial affairs due to cognitive decline, severe illness, or injury. By having a financial POA in place, the principal ensures that a trusted individual can step in to handle financial matters if they become incapacitated.
Another common scenario where a financial POA is useful is when the principal is traveling extensively or living abroad for an extended period. In such cases, having an agent with the authority to manage financial affairs domestically can be invaluable for handling time-sensitive matters or addressing unexpected financial issues that may arise during the principal’s absence.
Individuals who have complex financial portfolios or business interests may also benefit from having a financial POA. This arrangement allows for seamless management of investments, property transactions, or business operations, even if the principal is temporarily unavailable or unable to attend to these matters personally.
It is important to note that while a financial POA can be crucial in many situations, it should be established while the principal is of sound mind and capable of making informed decisions. Waiting until a crisis occurs may result in challenges to the validity of the document or the inability to create one altogether. Therefore, legal experts often recommend that adults of all ages consider implementing a financial POA as part of their overall estate planning strategy.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.