Financial Durable Power of Attorney

A financial durable power of attorney is the document where you state who will be your “attorney-in-fact” and make financial decisions for you if you become disabled. In this context, “disabled” means that a doctor has made a written statement that you are unable to manage your financial affairs. Only upon this determination would your attorney-in-fact have the authority to make decisions for you.

If you do not have a power of attorney and become disabled, you will likely have to go through a guardianship, which is the court process to appoint a decision-maker (guardian) for you. A guardianship can be very expensive, time-consuming, and can seriously limit your legal rights. In other words, it is worth avoiding if possible. Along with a health care durable power of attorney, a financial durable power of attorney is the best way to protect yourself from having to go through a guardianship.

The goal is that you never need to use a financial durable power of attorney. However, if it is needed, it’s very important and saves a lot of money and frustration for your family. When you appoint your attorney-in-fact, you must make sure that it is a person who is 100% trustworthy and will make all decisions in your best interests.

Examples of decisions or actions your financial attorney-in-fact may make for you or take on your behalf:

• Opening or closing bank accounts
• Paying your bills
• Filing your tax returns
• Accessing your safe deposit box
• Making gifts that are consistent with previous gifts you’ve made
• Selling your home, if necessary
• Buying or renting a home for you
• Working with your financial advisor or CPA