Important Things to Know About a Financial Power of Attorney

 Posted on September 21, 2023 in Powers of Attorney

A financial power of attorney is a legal document enabling another person to manage financial matters on your behalf. This document is an essential part of a comprehensive estate plan and can provide peace of mind in the event of incapacity or the need for assistance with financial affairs. Contact a lawyer if you are seeking essential legal assistance in any matters related to estate planning, including those involving financial power of attorney.

Further Defining the Purpose and Scope of Financial Power of Attorney

A financial power of attorney is a legal arrangement that designates an individual, known as the agent or attorney-in-fact, to act on your behalf in financial matters. In Los Angeles, a financial power of attorney can pay bills, manage investments, buy or sell assets, file taxes, and make financial decisions. The scope of authority granted to the agent can be broad or limited, depending on your preferences and needs. 

Incapacity Planning

One of the primary purposes of a financial power of attorney is to plan for the possibility of incapacity. If you cannot manage your financial affairs due to illness, injury, or cognitive decline, the agent named in the power of attorney can step in and handle your financial matters. This ensures that your bills are paid, investments managed, and financial decisions are made in your best interest. 

Avoiding Court Appointed Guardianship

Without a financial power of attorney in place, your loved ones may need to go through the court process of appointing a guardian or conservator to handle your financial affairs. This process can be time-consuming, expensive, and emotionally draining for all involved. By having financial power of attorney, you can avoid the need for court intervention and maintain control over who manages your finances.

Flexibility and Customization

A particular upside of a financial power of attorney is that it is a flexible document that can be tailored to your specific needs and preferences. You can specify when a power of attorney becomes effective, whether it is immediately or upon a triggering event such as incapacity. You can also determine the extent of the agent’s authority, including any limitations or restrictions you wish to impose.

Contact a Los Angeles Estate Planning Lawyer 

While no one can predict the future, estate planning is an excellent way of preparing for both the expected and unexpected. Contact the experienced L.A. County estate planning attorney with Law Office of David Schechet for assistance in estate planning. Call 800-282-4731 for a free consultation.