A financial power of attorney is a legal document that grants a person (the agent or attorney-in-fact) the authority to manage the financial affairs of another person (the principal) in the event that the principal becomes incapacitated or unable to manage their financial affairs on their own.
A financial power of attorney typically grants the agent the authority to perform a wide range of financial tasks on behalf of the principal, including:
Paying bills and expenses
Managing bank accounts and investments
Buying or selling real estate or other property
Applying for government benefits
Signing contracts and legal documents
The agent’s authority to act on the principal’s behalf can be limited to specific tasks or can be broad enough to cover all financial matters.
A financial power of attorney is an important estate planning document that can help to ensure that a person’s financial affairs are managed in the event that they become incapacitated. It is important to choose an agent who is trustworthy and capable of handling financial matters, and to review and update the financial power of attorney regularly to ensure that it reflects any changes in a person’s circumstances or wishes.
Click here to visit RELEP’s Estate Planning webpage.