Financial Power Of Attorney Law and Legal Definition
A power of attorney is an instrument containing an authorization for one to act as the agent of the principal that terminates at some point in the future either by its terms or by operation of law such as death of the principal or agent. A financial power of attorney grants the agent power to generally handle the principal?s financial affairs. If a person doesn?t have the energy, desire or ability to deal with financial matters, this document would allow someone else to do it for him/her. However, by granting a financial power of attorney, principals don't give up any of their own power over their financial affairs, they simply delegate a representative who can sign documents, write checks or sell real estate for them. By way of a financial power of attorney one can delegate tasks like paying rent or mortgage, conducting financial transactions, handling investments and the like to the agent.
Usually the most common reasons for preparation of financial power of attorney are:1.When a person contemplates the need for completing financial transactions during a period when he/she shall not to available to complete the transactions.
2.As a preventive measure to avoid hassles in future. For example if a person loses his mental capacity to handle his/her financial affairs, if he/she has a durable power of attorney executed the agent will be able to handle that person?s financial affairs without the time and attorney fees necessary for going to the court to get a guardian / conservator appointed.
3.When a person is very ill and doesn?t have the energy, desire or ability to deal with financial matters.
A financial power of attorney is different from a health care power of attorney and it gives the agent no say in health care and medical decisions.
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