If you’ve already taken the step to consider creating a financial power of attorney, congratulations. This is an important part of your estate plan and your incapacity plan. Without a financial power of attorney someone in your family will have to go to court to request guardianship or conservatorship of you.
In the event of an emergency, which is likely what triggered the need for a financial power of attorney in the first place, you do not want any added delays or frustrations for your loved ones. Creating a financial power of attorney names you as the principal of the document and another party that you choose as the agent. The agent is responsible for acting on your behalf if and when you need him or her to do so.
There are a variety of different kinds of tasks that a financial power of attorney agent can do, including:
- Collect debts belonging to the principal
- Manage the principal’s property
- File taxes on behalf of the principal
- Assess the principal’s financial accounts to pay for housing needs, health care and other expenses
- Apply for public benefits for that principal
Without any limitations in the document, a general power of attorney gives the agent broad discretion over financial decisions but there are a few things that the agent cannot do, such as break their fiduciary duty, change the principal’s will or transfer the power of attorney to someone else. It’s extremely important to select the right person to serve as your power of attorney agent. Do not wait to get help. Contact an experienced attorney today to learn more.