A financial power of attorney is a document that gives someone the legal authority to make decisions about your finances if you cannot do so yourself. This can be helpful if you become incapacitated or if you are out of the country and need someone to handle your finances for you.
If you don’t have a financial power of attorney in place, the court will appoint a guardian to handle your finances. This can be expensive and time-consuming, so it’s best to have a financial power of attorney in place ahead of time.
If you’re considering creating a financial power of attorney, here are some things to keep in mind:
- Choose the right person. The person you choose as your financial power of attorney should be someone you trust implicitly and who has a good understanding of your financial situation.
- Give them power over specific assets. You may want to give your financial power of attorney authority over specific assets, or you may want them to have broad authority to make decisions about all your finances.
- Make sure they know what they’re doing. It’s important to choose a financial power of attorney capable of managing your finances and who understands the responsibility that comes with this role.
- Update your power of attorney as needed. The laws governing financial powers of attorney can change over time, so be sure to update your document as needed to ensure that it still reflects your wishes.
- Keep a copy of the document safe. Keep a copy of your financial power of attorney in a safe place where it will be easy to access if needed.
- Talk to your financial advisor. If you have any questions about creating a financial power of attorney, talk to your financial advisor. They can help you ensure that your document is tailored to your specific needs.
- Review your will. A financial power of attorney can help you avoid the need for guardianship if you become incapacitated, but it’s also important to have a will in place. Talk to your estate planning attorney to ensure that your will reflects your current wishes.
- Get help if you need it. If you’re not sure how to create a financial power of attorney, there are many resources available to help you. Talk to your estate planning attorney or a trusted friend or family member for help getting started.
A financial power of attorney can be a valuable tool for managing your finances if you become incapacitated or are out of the country. Make sure to choose the right person to act as your financial power of attorney and update your document as needed. Talk to your financial advisor if you have any questions about creating a financial power of attorney.