Personalized Estate Planning Services 

What is a financial power of attorney?

On Behalf of | Jun 13, 2019 | Estate Planning |

An estate plan is a set of testamentary documents that provides instructions to survivors about how the decedent wished to distribute the property and assets in their estate. Colorado residents of all backgrounds and walks of life should have estate plans to ensure that their end-of-life wishes are honored in the event that emergencies or other unexpected events curtail their lives. Estate planning attorneys can assist readers who are interested in pursuing this type of legal work.

However, some estate planning documents may be important even before the drafter passes away. For example, if a person becomes incapacitated and is unable to make decisions for themselves, they may need someone else to act on their behalf. With regard to financial matters, this person can be named in a financial power of attorney document.

A financial power of attorney is a legal device that grants financial authority to a named person to manage the affairs of another person. The named individual can pay the other person’s bills, manage their investments, transfer funds between accounts, and undertake other necessary financial obligations. Through a financial power of attorney, a person can give their named administrator instructions on how they would want their money managed during their incapacitation.

It is hard to plan for the unexpected, but a financial power of attorney takes away the question of what will happen to a person’s money when they become unable to take care of it. To begin learning more about financial powers of attorney and other estate planning documents, readers are asked to speak with their trusted local estate planning lawyers.