While a Medical Power of Attorney generally gives an agent the authority to make medical and personal care decisions on behalf of the principal, a Financial Power of Attorney gives an agent authority to manage the principal’s finances and property and to transact business on behalf of the principal.Īgent: An “Agent” (who also may be referred to as an “attorney-in-fact”) is a person designated by another to manage the other person’s financial affairs. What are your powers? What are your duties and responsibilities? What are your liabilities?įinancial Power of Attorney: A Financial Power of Attorney is different than a Medical Power of Attorney. Introduction: You may be the “Agent” under a Financial Power of Attorney, also known as a General Power of Attorney or General Durable Power of Attorney. If you have more detailed questions about your role as an agent, you should consult an experienced estate planning or probate attorney.) You must read the power of attorney document. (This is not a legal document and is only intended as a general guide for agents. Check out for listings of lawyers in your neighborhood.YOU ARE NOW AN AGENT UNDER A FINANCIAL POWER OF ATTORNEY Only you can decide if hiring a lawyer is right for you. The power of attorney for healthcare is generally only extinguished upon your death, revocation by you or a court, or upon divorce if the power of attorney was granted to the ex-spouse. This document takes effect when your doctor declares that you lack the capacity to make your own health care decisions. In order to create a power of attorney for healthcare, most states only require that you be an adult and be competent when you create the document. Your agent will make decisions that are not covered by your healthcare directive, but can never contradict their terms. Even though you may have set out your wishes in your healthcare directive or Living Will, such documents cannot cover every possible situation. The power of attorney for finances is typically extinguished upon death, revocation, or divorce, if the power of attorney was granted to the ex-spouse.Ī durable Power of Attorney for healthcare designates the person who will make medical decisions for you in an emergency. If your agent will have to deal with real estate assets, some states require you to put the document on file in the local land records office. The agent is required to act in your best interests, maintain accurate records, keep your property separate from theirs and avoid conflicts of interest.Ī durable Power of Attorney for finances must be signed, witnessed, and notarized. You can delegate authority to any or all of the following: 1) file and pay your taxes 2) collect Social Security, Medicare, or other government benefits 3) buy, sell, maintain, pay taxes on, and mortgage real estate and other property 4) use your assets to pay your everyday expenses and those of your family 5) invest your money in stocks, bonds, and mutual funds 6) manage your retirement accounts 7) transfer property to a trust you've already created 8) handle transactions with banks and other financial institutions 9) buy and sell insurance policies and annuities for you 10) operate your small business and 11) hire someone to represent you in court. They are required to act in your best interests. This person may be referred to as your agent or as an attorney-in-fact. A durable Power of Attorney for finances - or financial power of attorney - is a simple and inexpensive, way to arrange for someone to manage your finances if you become incapacitated.Ī durable Power of Attorney for finances can be drafted so that it goes into effect as soon as you sign it or you can specify that the power of attorney does not go into effect until a doctor certifies that you have become incapacitated.Ī durable power of attorney for finances grants your chosen representative the legal authority to act on your behalf for financial issues.
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