A financial power of attorney (POA) is a legal document that grants a designated individual (known as the agent or attorney-in-fact) the authority to manage the financial affairs of the person who created the POA (known as the principal). This can include a wide range of financial tasks, such as managing bank accounts, paying bills, handling investments, filing taxes and conducting real estate transactions.

Reasons for Needing a Financial Power of Attorney:

• Incapacity Planning: If you become incapacitated due to illness, injury or aging, your designated agent can manage your financial affairs, ensuring bills are paid and financial obligations are met without interruption.
• Convenience: If you are unavailable or unable to manage your finances due to travel or other commitments, your agent can handle tasks on your behalf.
• Estate Planning: It provides a smooth transition in managing your financial affairs, ensuring your assets are managed according to your wishes.
• Avoiding Court Intervention: Without a financial POA, if you become incapacitated, a court might need to appoint a guardian or conservator to manage your financial affairs, which can be a time-consuming and costly process.
• Protection Against Financial Abuse: While it might seem counterintuitive, having a well-structured POA can actually protect you from financial abuse by clearly outlining the powers and limitations of your agent, making it easier to spot and prevent unauthorized actions.

Create a Financial Power of Attorney