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 is a legal document that grants someone (known as the “agent” or “attorney-in-fact”) the authority to manage financial affairs on behalf of another person (the “principal”). This powerful legal tool is commonly used for estate planning and incapacity planning purposes. It allows the principal to designate a trusted individual to handle their finances if they become unable to do so themselves due to illness, injury, or other circumstances.
Some of the key uses of a financial power of attorney include:
1. Managing bank accounts and investments: The agent can access accounts, make deposits/withdrawals, trade securities, and manage the principal’s finances.
2. Paying bills and taxes: The agent can ensure the principal’s ongoing financial obligations are met by paying bills, filing tax returns, and making tax payments.
3. Buying/selling property: With proper authorization, the agent may be able to conduct real estate transactions on the principal’s behalf.
4. Applying for government benefits: The agent can handle applications and ongoing management of programs like Social Security, Medicare, or veterans benefits.
5. Managing a business: For business owners, a financial POA can allow the agent to keep operations running if the principal is incapacitated.
It’s important to note that the specific powers granted can be broad or limited, depending on how the document is drafted. The principal should carefully consider who to appoint as their agent and what powers to grant them. Consulting with an experienced estate planning attorney is advisable when creating a financial power of attorney to ensure it meets legal requirements and the principal’s needs.
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.