Estate Planning
Financial power of attorney.
A document that allows you to authorize another person to act on your behalf for financial or legal matters.
Why it matters
If you become unable to manage your own financial affairs, a financial power of attorney lets someone you have chosen step in without a court proceeding. Without one, your family may need to seek authority through the courts.
Points to consider
- Who you trust to act as your agent, and who serves if that person cannot
- How broad or limited the authority should be
- When the authority takes effect
- Whether your named agent is still the right choice after major life changes
Related: health care power of attorney and wills.