A financial power of attorney ensures that someone can take care of your finances if you become incapacitated.
This is a legal document that allows the person you appoint to do anything that you could do with your assets and other similar matters. For example, your financial power of attorney could pay your bills, file your taxes and do other necessary actions on your behalf if you were unable to do them yourself.
Why should you set up a financial power of attorney?
Your bills still need to be paid if you’re incapacitated. A power of attorney for your finances enables the person you designate to access your money to pay those bills. But, their power doesn’t end there. They can sell assets and acquire new assets for you. They have the power to act in your stead in anything that has to do with financial matters.
Who should you grant the financial power of attorney designation?
The person who has this power must be someone you trust completely. It’s important to remember that this person’s power will expire when you pass away. The financial matters are then handled by the administrator of your estate, which can be the same person as the person you named in the power of attorney designation.
A financial power of attorney is only one component of your estate plan. Having a comprehensive plan in place protects you and your family in the event of misfortune. Your attorney can help you to go over your wishes so you can be sure they’re accurately (and legally) conveyed.