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Download power of attorney form in Microsoft Word format.
Financial Power of Attorney Form: Planning for the Future
Do you need a financial power of attorney form—one that would legally permit another person to act on your behalf and handle your financial affairs? A financial power of attorney is the ideal method for allowing someone you trust to take care of your finances, and also a great way to plan for the day when you may be too ill or perhaps even too incompetent to make these financial decisions for yourself. In this article we will discuss the financial power of attorney in more detail, including when the financial power of attorney form goes into effect and your agent’s responsibility under the agreement.
Financial Power of Attorney Form: What Is It and When Does It Take Effect
The financial power of attorney form is a fairly simple document on which you will state the name of the person who will act as your agent, along with the financial responsibilities and permissions you are granting. In some cases, a financial power of attorney form goes into effect as soon as you sign it, essentially giving the agent permission to immediately act on your behalf in all matters that are financial in nature. Many married couples maintain a financial power of attorney on each other, just in case something should happen to one of them or for when the other spouse is out of town. Elderly people also can give power of attorney to adult children when they are too ill to conduct their own affairs.
Another option is to create a signed financial power of attorney form that won’t go into effect until after the principal becomes incapacitated as certified by a physician. This type of agreement helps to ensure that all financial matters will be handled by a trustworthy agent, one who will handle the principal’s affairs in a responsible manner.
You may also want to add a “durability” provision to the financial power of attorney. This provision states that the power of attorney will remain in effect even after the principal is deemed incompetent or incapacitated. Without this clause, any power of attorney will be null at that time.
Financial Power of Attorney Form: Agent’s Responsibility
So what are your agent’s responsibilities under a financial power of attorney? This will vary from case to case, but generally speaking, the agent will be permitted to conduct all of the following activities (unless an activity is specifically precluded in the agreement):
- Pay for everyday expenses using your assets
- Care for, buy, sell and pay taxes on any real estate or property
- Collect benefits including Social Security and Medicare benefits
- Take care of all banking transactions (deposits, withdrawals, etc.)
- Handle your investment portfolio, including the buying and selling of stocks and bonds
- Buy and sell insurance for you
- Send and pay your annual taxes
- Operate any businesses you may own
- Hire legal representatives on your behalf
- Manage retirement accounts and savings
- And more…
A financial power of attorney form, when a durability provision is added, will remain in effect until you revoke it or until it is invalidated by a court of law, usually due to misconduct of the agent. You can also name a secondary agent to represent you in the event the primary agent is no longer in a position to do so.