A financial power of attorney is a legal document giving an individual of your choosing the power to make financial decisions for you, should you become unable to make your own decisions. This document is a simple, inexpensive way for you to prepare for your finances. It also saves your family from having to have a court proceeding in order to have someone be appointed to help with the payment of your estate bills.
Individuals with physical handicaps or limitations, or those facing end of life decisions are perfect examples of those that need to establish a financial power of attorney. The simple task of going to the bank or paying a bill at a separate location may be more than you can handle. Having someone appointed that can handle these items for you will allow you to focus on your care.
The main thing to remember when having a financial power of attorney drawn up is to make sure it is a durable power of attorney. This simply means that the power of attorney will remain in force after you lose the mental capacity to handle your own finances. If you have a financial power of attorney that is not durable, the power of attorney will become null at the time you become mentally incapacitated. In this case, your family will have to go to court in order to get a guardian or conservator appointed to make your financial decisions.
