Financial powers of attorney serve an important role for those who require assistance with financial matters, including specific transactions or daily money management. Learn more about what a financial power of attorney is and how and when you may need to establish one.

What is a Financial Power of Attorney?

A financial power of attorney is a legal document, called a Durable POA, that enables you to name an agent to take care of your finances presently or in the event that you are no longer able to do so yourself. While many people are hesitant to release control of their finances to another, it’s important to understand that a power of attorney is revocable and voluntary. In the event of a medical emergency, having a Durable Power of Attorney in place can save the expense and time of a court-appointed Conservator.

How much Control does a Financial Power of Attorney have?

You may choose how much authority you give to your financial power of attorney. Regardless of how much control you grant your financial power of attorney, your agent is legally obligated to act in your best interest while maintaining accurate records, keeping their property separate from yours and avoiding conflicts of interest. It is important to detail how you want your financial matters handled so that your agent can manage your finances in the way that you instruct; this helps your agent make informed decisions on your behalf.

Is it really necessary to establish a Financial Power of Attorney?

If you don’t appoint someone to be your POA, the courts may be required to appoint a conservator should you ever become incapacitated. To make sure that you are able to choose the person who will manage your finances on your behalf, it is important to establish a financial power of attorney before you need one.

It’s important to understand that a durable power of attorney ends at your death. If you would like to grant authority to someone to manage your affairs after your death, you need to establish someone as a personal representative for your estate.

Keep in mind that a financial power of attorney form is a legal document and should be crafted by an attorney to ensure your wishes are clearly communicated.

Decades, LLC is an interdisciplinary group of highly qualified elder care professionals. We are committed to ensuring our clients maintain as much autonomy as possible while maintaining the highest quality of life and the greatest amount of independence. When you choose Decades, LLC as your financial power of attorney, we will sit down with you to understand your wants and needs so that we can act in your best interest if ever the need arises. Please understand that we are not attorneys, but can refer you to an attorney for any and all legal needs you may have.

For more information, please contact us in Albuquerque, NM at 505-345-5529 or in Santa Fe, NM at 505-983-7787.