Durable Financial Power of Attorney
Financial Power of Attorney
A durable financial power of attorney is a way to allow someone else to manage your finances in the event you are unable to manage your finances yourself. The person you grant as your financial power of attorney is often referred to as your “agent”. The power to make these decisions for you is given to your designated agent in a legal document. A financial power of attorney is not only useful for you, but can help your family during this sensitive time as well.
“Having a financial power of attorney is a prudent part of your comprehensive estate planning along with a will or trust.”
WHAT CAN YOUR FINANCIAL AGENT DO?
What your financial agent can and cannot due is up to you. When deciding these limits, you should consider the tasks you would like your agent to perform. These tasks may include:
Accessing financial records
Buying insurance
Collecting retirement benefits
Investing on your behalf
Managing real estate assets
Operating your small business
Paying your bills
Paying your taxes
Transferring, selling, and/or buying assets
MORE ABOUT A FINANCIAL POWER OF ATTORNEY:
A financial power of attorney generally goes into effect when it is signed. However, another option is to create a “springing” financial power of attorney. This means the power is not granted to your agent until you are incapacitated.
The financial power of attorney automatically ends upon death. Financial matters after your death, will then be in the hands of the named executor in your will. Other ways your financial power of attorney can be extinguished include divorce, the event your named agent is unavailable or revocation. Because of the number of ways your agent’s power may terminate, it is helpful to name an alternate agent.
“It’s important to remember that your agent is required by law to act in your best interest in regards to all the decisions they make on your behalf.”
What to do next:
If you’re in need of a financial power of attorney contact the Tyler Allen Law Firm for a consultation. Simply fill out the form on this page or call us at (602) 456-0545 to speak with an attorney. As always, we’re here to help.