Financial Power of Attorney
A Financial Power of Attorney is a legal document that allows one person, known as the principal, to authorize another trusted individual, known as an agent or attorney-in-fact, to handle certain financial and property-related matters on their behalf. Depending on the authority granted, a Financial Power of Attorney may allow the agent to assist with tasks such as managing bank accounts, paying bills, handling real estate transactions, overseeing investments, or conducting other financial activities.
Financial Powers of Attorney are commonly used as part of a comprehensive estate plan and can help ensure that important financial matters continue to be managed if an individual becomes unavailable, incapacitated, or simply wishes to authorize another person to act on their behalf.
Common Types of Financial Powers of Attorney
What a Financial Power of Attorney Can Do
Depending on the authority granted by the document, a Financial Power of Attorney may allow an agent to:
-
Manage bank and financial accounts
-
Pay bills and ongoing expenses
-
Handle certain real estate transactions
-
Manage investments and financial assets
-
Conduct business-related financial activities
-
Communicate with financial institutions
What a Financial Power of Attorney Generally Cannot Do
A Financial Power of Attorney does not typically allow an agent to:
-
Create or modify a will on behalf of the principal
-
Vote in public elections for the principal
-
Perform duties that are strictly personal in nature
-
Act outside the authority granted in the document
-
Continue acting after the principal's death
Because every individual's circumstances are different, Financial Powers of Attorney are often prepared as part of a broader estate planning strategy designed to help ensure that financial affairs can continue to be managed when needed.