Did you know that your Durable Financial Power of Attorney (POA) can be tailored to fit your financial needs? You can use your POA for a variety of purposes. First you must decide if you want your POA to cover any financial emergency or if you wish for it to spring and only go into effect if you are judged by a physician to be incapacitated. Then you must decide what powers you want your agent or attorney-in-fact to have.
You can use your Durable Power of Attorney to allow your agent to control some or all of your financial accounts. Your agent can handle bank transactions, control and invest your retirement accounts, and buy or sell insurance policies on your behalf. Because your agent will have access to your financial accounts, be sure to choose someone who will always act with your interests in mind.
A Durable Power of Attorney can allow your named agent to receive and use income, including income like Social Security benefits or royalties, on your behalf. Income can be used to pay bills, maintain property, and pay for your medical or personal care.
Do you own a small business? If so, you can ask your financial agent to operate and control your business while you are unable to do so. This can be helpful if you are out of town and a financial emergency arises, or if you are incapacitated and rely on your business income to pay your living expenses.
Your financial agent can also control your real estate and personal property, including paying property taxes and mortgage payments, maintaining property, and selling property to help pay your expenses. Your agent can also transfer any real estate or personal property into a Trust. This is helpful if you did not fully fund your Revocable Living Trust before you became debilitated. If you should inherit property, your agent can also control that property.