A financial power of attorney gives someone else the authority to act on your behalf in managing your money and property. For example, it lets you designate someone to handle your bills, pay your taxes, and invest your savings.
Who Needs a Financial Power of Attorney?
If you are concerned about being able to make decisions regarding your own finances when you are no longer able to do so, then a financial power of attorney might be something you need. You should consider having one if you have any of these situations:
- You are going through a divorce or separation.
- You are facing serious medical issues.
- You are dealing with a major life event such as getting married, buying a house, or starting a family.
- You are planning to retire.
- You are worried about becoming financially dependent on others.
- You own a business.
When Should You Create a Financial Power of Attorney in Arizona?
It’s never too early to start thinking about creating one. However, there are some things you should keep in mind before doing so. First, you should talk to your lawyer about what type of power of attorney would work best for you. Second, you should think about who will be managing your money if you become incapacitated. Will it be your spouse, children, or other relatives? Third, you should also think about how much control you want to give up. Do you want to give up control completely, or just certain aspects of your finances? Fourth, you should think about whether you want to appoint a conservator for your property. Fifth, think about when the financial power of attorney goes into effect. A power of attorney can be effective when you sign it, or it can “spring” into effect upon a future event (such as if you become incapacitated). And finally, do you need a “durable” power of attorney, which will continue to be effective if you become incapacitated?
What Is a Financial POA Document?
A financial power of authority (also known as a “financial POA”) is a legal document that gives another individual the ability to make decisions regarding your finances if you become incapable of making those decisions yourself. This includes paying bills, signing contracts, filing your tax returns, managing a business, and more. In addition, a financial power of attorney can allow someone to take care of your assets while you are still alive.
What Are Some Common Uses For a Financial Power of Attorney?
There are several reasons why you might need a financial power of attorney. If you are going through a divorce, you will likely need one. You may also need one if you are planning to move out of state or even out of country. It is also common for people who own businesses to use a power of attorney to protect themselves against business partners who may not be trustworthy.
What Does a Financial Power of Attorney Cover?
A financial power of authority gives someone the ability to make decisions regarding your money and property if you become incapacitated. The actual powers given to the agent are spelled out in the document.
The agent named in the financial power of attorney is commonly given the following powers:
- To transfer property to your trust
- To sell property
- To buy property
- To invest
- To enter into contracts
- To manage real property
- To manage personal property
- To manage digital assets
- To deal with oil, gas, and mineral interests
- To operate a business
- To manage partnership and limited liability company interests
- To deal with securities (stocks, bonds, mutual funds)
- To collect from people who owe you money
- To settle your obligations
- To deal with governmental benefits
- To deal with your retirement plans and employee benefits
- To manage bank accounts and financial accounts
- To deal with credit cards
- To access your safe-deposit boxes
- To prosecute and defend legal actions
- To loan and borrow
- To create a revocable living trust for your benefit
- To deal with insurance
- To file your taxes and deal with tax matters
- To deal with your spouse (such as entering into a marital property agreement)