POWER OF ATTORNEY - Financial Power of Attorney - A Financial Power of Attorney (POA) is a legal document that grants someone (the "agent") the authority to manage the financial affairs of another person (the "principal") if the principal becomes unable to do so themselves.
How it works:
The principal (the person granting the power) names an agent (someone they trust) to act on their behalf. The agent can then handle financial tasks such as managing bank accounts, paying bills, investing, and handling taxes.
Types of Powers of Attorney:
- Durable: A durable Power of Attorney remains in effect even if the principal becomes incapacitated.
- Springing: A springing Power of Attorney goes into effect only upon the occurrence of a specific event, such as a doctor's determination of incapacity.
Importance:
A Financial Power of Attorney is a crucial part of estate planning, allowing individuals to have peace of mind knowing that their financial affairs will be managed by someone they trust, even if they are unable to do so themselves.
What an agent can do:
- Make bank deposits, withdrawals, or other transactions
- Trade stocks and bonds
- Pay your bills
- Buy or sell property
- File your tax returns
- Arrange the distribution of retirement benefits
- Negotiate and sign contracts
- Apply for benefits like SSI
POWER OF ATTORNEY - Financial Power of Attorney (Nationwide)
POWER OF ATTORNEY - Financial Power of Attorney - A Financial Power of Attorney (POA) is a legal document that grants someone (the "agent") the authority to manage the financial affairs of another person (the "principal") if the principal becomes unable to do so themselves.
How it works:
The principal (the person granting the power) names an agent (someone they trust) to act on their behalf. The agent can then handle financial tasks such as managing bank accounts, paying bills, investing, and handling taxes.Types of Powers of Attorney:
- Durable: A durable Power of Attorney remains in effect even if the principal becomes incapacitated.
- Springing: A springing Power of Attorney goes into effect only upon the occurrence of a specific event, such as a doctor's determination of incapacity.
Importance:
A Financial Power of Attorney is a crucial part of estate planning, allowing individuals to have peace of mind knowing that their financial affairs will be managed by someone they trust, even if they are unable to do so themselves.What an agent can do:
- Make bank deposits, withdrawals, or other transactions
- Trade stocks and bonds
- Pay your bills
- Buy or sell property
- File your tax returns
- Arrange the distribution of retirement benefits
- Negotiate and sign contracts
- Apply for benefits like SSI