What is a Financial Power of Attorney? How does it fit into my Estate Plan

What would happen if you became too sick to manage your bank accounts? You can prevent financial disaster with a sold estate plan. 

In estate planning, most focus on wills and asset distribution, but a Financial Power of Attorney (POA) is just as crucial. This legal document gives someone you trust, also known as the agent or *attorney-in-fact, the authority to handle your financial matters if you're unable to do so yourself due to illness, injury, or incapacity. Without it, your loved ones may need to go through a costly and time-consuming court process to take control of your finances. 

Types of Financial POA

There are two main types of Financial Powers of Attorney: 

● Durable Financial POA: Remains in eect if you're incapacitated, making it ideal for long-term planning. 

● Springing POA: Activates only under specific conditions, like incapacity. 

Choosing the right type depends on your personal needs and circumstances. A well-drafted POA ensures that someone you trust can manage your financial aairs without delays or legal hurdles. 

Why Include a POA in Your Estate Plan?

A POA is crucial for more than just asset distribution after death. It empowers someone you trust to manage your financial matters while you’re still alive, in case of medical emergencies or cognitive decline. Without it, even close family members may face legal barriers in managing your finances. 

Integrating a POA with Other Documents

Your Financial POA should be part of a comprehensive estate plan, alongside:

● Last Will and Testament 

● Advance Medical Directive 

● Revocable Living Trust 

Together, these documents provide full protection, ensuring your wishes are respected both during your life and after. 

Final Thoughts

While online templates exist, an experienced estate planning attorney can ensure your POA and other documents are tailored to your specific needs and state laws. 

Contact us today to ensure your estate plan is complete and legally sound.