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Powers of Attorney for Financial Matters

There may come a time when you will want someone else to handle your financial affairs.  You can create a power of attorney for financial matters that springs into existence at such time as you can no longer competently handle your affairs. Your representative (called an "attorney-in-fact") will have the financial authority you grant that person in the document creating a power of attorney for financial matters. You can also set forth when the powers will be effective, such as when two physicians agree that another person person should handle your assets.  You may also decide to grant some powers effective immediately, or for a short period of time, such as if you will be out of the country or dealing with an illness.  Generally, an attorney-in-fact may be given authority, in a writing prepared by your attorney, to handle all or some matters such as:

  1. use your assets to pay your everyday expenses
  2. deal with your accounts at financial institutions
  3. buy, sell, maintain, manage and mortgage personal property and real estate 
  4. file and pay your taxes
  5. manage your retirement accounts
  6. collect benefits from government programs
  7. invest your money buy and sell insurance policies and annuities for you
  8. operate your small business

 

An attorney-in-fact cannot:

  1. make healthcare decisions for you (that power is the subject of a separate power of attorney for healthcare matters)
  2. make a trust or will for you

 

The attorney-in-fact you appoint in your durable power of attorney has the duties of a "fiduciary," which is someone who holds a position of trust and must act in your best interests. Thus, your attorney-in-fact is required to:

  1. be careful with your property by handling it honestly and prudently
  2. avoid conflicts of interest
  3. keep your property completely separate from her own
  4. keep adequate records for all transactions made on your behalf

 

An attorney-in-fact is not directly supervised by a court and, as such, is not required to file reports with any government agencies. However, a loved one who has doubts about the attorney-in-fact may ask a court to order the attorney-in-fact to take certain actions or ask a court to terminate the power of attorney-in-fact and appoint a conservator to supervise your affairs.