A Financial Power of Attorney is a legal document that grants someone, known as the agent or attorney-in-fact, the authority to manage another person’s finances and make financial decisions on their behalf. This document can be used in various situations, such as when an individual becomes incapacitated or is unable to handle their financial matters due to illness, disability, or absence.

When a Financial Power of Attorney is created, the person granting the power, known as the principal, designates someone they trust to act as their agent. The agent then has the authority to manage the principal’s finances, such as paying bills, managing investments, filing taxes, and making financial decisions. The agent must always act in the best interest of the principal and follow any instructions or limitations specified in the power of attorney document.

Any adult who is of sound mind can create a Financial Power of Attorney. It is important to create this document while you are still capable of making decisions and understanding the implications. If you become incapacitated without a Financial Power of Attorney in place, it may be necessary for a court to appoint a guardian or conservator to manage your finances, which can be a costly and time-consuming process.

The powers granted in a Financial Power of Attorney can vary depending on the wishes of the principal. Some common powers include: managing bank accounts, paying bills, collecting government benefits, making investment decisions, filing taxes, buying or selling property, and managing business interests. It is important to clearly specify the powers granted and any limitations or instructions in the power of attorney document.

Yes, a Financial Power of Attorney can be revoked at any time by the principal as long as they are still mentally competent. The revocation should be done in writing and provided to the agent and any relevant financial institutions. It is also advisable to inform any other relevant parties, such as family members or healthcare providers, about the revocation to ensure everyone is aware of the change.