Financial Power of Attorney

What is a Financial Power of Attorney?

A Financial Power of Attorney (POA) is a legal document that allows you to appoint someone you trust—called your agent or attorney-in-fact—to manage your financial affairs if you become unable to do so. This ensures that your bills are paid, your investments are managed, and your financial responsibilities are handled according to your wishes.

At Vault Estate Planning, we help individuals and families establish a Financial Power of Attorney as part of a comprehensive estate plan, ensuring their financial security and peace of mind.

Why Do You Need a Financial Power of Attorney?

Many people assume their spouse or family members will automatically have the authority to handle their finances if they become incapacitated. However, without a Financial Power of Attorney, your loved ones may have to go through a costly and time-consuming court process to obtain legal authority.

A Financial Power of Attorney ensures that:

✅ Your bills, mortgage, and taxes are paid on time
✅ Your investments and assets continue to be managed
✅ Your business interests remain protected
✅ Your financial affairs do not become a burden on your family
✅ You avoid the delays and expenses of court-appointed guardianship

What Can an Agent Do Under a Financial Power of Attorney?

The powers granted in a Financial Power of Attorney can be broad or limited, depending on your needs. Your agent may be authorized to:

🔹 Pay bills, manage bank accounts, and handle everyday expenses
🔹 Manage real estate transactions, including buying or selling property
🔹 Oversee investments, stocks, and retirement accounts
🔹 File and manage taxes on your behalf
🔹 Apply for government benefits (Social Security, Medicare, VA benefits, etc.)
🔹 Operate or manage a business on your behalf

How Does a Financial Power of Attorney Work?

1️⃣ Choose an Agent – Select a trusted family member, friend, or professional to handle your financial matters.
2️⃣ Define Their Authority – Specify which financial tasks your agent can perform and any limitations.
3️⃣ Make It Durable (Optional) – A Durable Financial Power of Attorney remains in effect even if you become incapacitated.
4️⃣ Sign & Notarize – A properly executed Financial POA must be signed and notarized to be legally valid.
5️⃣ Use as Needed – Your agent can step in when necessary, ensuring your financial matters are handled without disruption.

Types of Financial Power of Attorney

🔹 General Power of Attorney – Grants broad authority to handle all financial matters on your behalf.
🔹 Limited (Special) Power of Attorney – Authorizes your agent to perform specific tasks, such as selling a property or handling a single financial transaction.
🔹 Durable Power of Attorney – Remains in effect if you become incapacitated, ensuring your finances continue to be managed.
🔹 Springing Power of Attorney – Only takes effect under specific conditions, such as incapacity, and requires legal confirmation before use.

Financial Power of Attorney vs. Revocable Living Trust

A Financial Power of Attorney and a Revocable Living Trust serve different but complementary roles in estate planning:

✔ The Financial Power of Attorney manages assets outside the trust, such as bank accounts, business interests, and tax matters.
✔ The Revocable Living Trust controls assets placed inside the trust, ensuring a smooth transfer of property.

By combining both, you create a comprehensive plan to protect your finances in any situation.

Get a Financial Power of Attorney with Vault Estate Planning

At Vault Estate Planning, we specialize in creating Financial Power of Attorney documents that fit your unique needs and integrate seamlessly with your overall estate plan. Our team ensures your documents are legally enforceable, properly structured, and tailored to protect your assets and financial future.