Financial Power of Attorney

What is a Financial Power of Attorney?

A Financial Power of Attorney is a legal document that allows you (the principal) to appoint a trusted person (your agent or attorney-in-fact) to manage your financial affairs.

Your chosen agent can handle tasks such as:

✔️ Paying bills, managing bank accounts, and handling financial transactions
✔️ Buying or selling real estate and managing investments
✔️ Filing taxes and handling government benefits (Social Security, Medicare, etc.)
✔️ Running a business or signing legal contracts on your behalf
✔️ Protecting assets and making sure your financial obligations are met

This document can go into effect immediately or only if you become incapacitated, depending on how it is drafted.

Types of Financial Power of Attorney

There are different types of Financial POAs, each serving a specific purpose:

1. Durable Power of Attorney

✅ Remains in effect even if you become incapacitated.
✅ Essential for long-term financial planning and medical emergencies.

2. Springing Power of Attorney

✅ Only becomes active if you are declared mentally or physically incapacitated.
✅ Requires medical confirmation of incapacity before your agent can act.

3. Limited or Special Power of Attorney

✅ Grants authority for specific financial tasks (e.g., selling a home, handling a single transaction).
✅ Expires once the task is completed.

4. General Power of Attorney

✅ Grants broad authority over all financial matters.
✅ Usually ends if you become incapacitated (unless it’s durable).

Why You Need a Financial Power of Attorney

Without a Financial Power of Attorney, your loved ones may face:

⚠️ Frozen Bank Accounts – No one can access or manage your finances.
⚠️ Delayed Bill Payments – Missed mortgage, utility, or insurance payments.
⚠️ Court Intervention – Your family may need to petition for guardianship to manage your assets.
⚠️ Business Disruptions – If you own a business, operations could be stalled.

By creating a Financial POA, you ensure your finances stay in order—no matter what happens.

Who Should Have a Financial Power of Attorney?

A Financial Power of Attorney is essential for everyone, but especially if you:

🏡 Own a home or multiple assets
💰 Have savings, investments, or retirement accounts
📈 Run a business or manage financial transactions regularly
👴 Are aging and want to ensure your finances are handled properly
🛫 Travel frequently or live abroad for extended periods

Even younger adults should have a Financial POA to avoid complications in case of emergencies.

What Happens If You Don’t Have a Financial POA?

If you become incapacitated without a Financial Power of Attorney:

❌ Your family may need court approval to access your assets.
❌ Financial accounts may be frozen, leading to missed payments.
❌ Real estate transactions and investments could be delayed or halted.
❌ A court-appointed conservator may be assigned, taking away control from your loved ones.

With a Financial POA, you remain in control by choosing someone you trust to manage your affairs.

How Brentwood Law Can Help

✔️ Attorney-Drafted POA – Customized to your specific financial needs.
✔️ Legally Binding Protection – Ensures your agent has the authority to act.
✔️ Flat Fees & Transparent Pricing – No hidden costs, just expert legal guidance.
✔️ Fast & Convenient Process – We handle everything for you.

Frequently Asked Questions (FAQ)

❓ Who should I appoint as my financial agent?
You should choose a trusted person who is financially responsible, such as a spouse, adult child, or close family member. You can also appoint a professional, such as an attorney or financial advisor.

❓ Can my agent do whatever they want with my money?
No. Your agent has a legal duty to act in your best interest and manage your finances responsibly. Misuse of funds can lead to legal consequences.

❓ Can I revoke or change my Financial Power of Attorney?
Yes! As long as you are mentally competent, you can update or revoke your POA at any time.

❓ Does my Power of Attorney expire?
A Durable POA remains in effect until you revoke it or pass away. A Limited or Special POA expires once the specific task is completed.

Protect Your Financial Future Today

A Financial Power of Attorney ensures your financial affairs are handled smoothly, preventing legal disputes, delays, and unnecessary stress for your loved ones.