ANSWERS: 1
  • A financial power of attorney is a legal document that gives somebody else authority to handle your money and property in case you become unable to handle it yourself.

    Generally

    A financial power of attorney is a legal document that is included in most estate plans.

    Function

    A financial power of attorney allows you to plan ahead for accidents or medical calamities by authorizing another person to take care of your estate if you can't.

    Parties

    The person executing the financial power of attorney is called the principal, and the person authorized to act on their behalf is called the agent or attorney in fact.

    Time Frame

    A financial power of attorney takes effect and lasts for as long as the written document instructs. Most commonly, the financial power of attorney is effective for as long as the principal is incapacitated or otherwise unable to make their own financial decisions.

    Warning

    When a financial power of attorney takes effect, the agent has broad authority to manage and spend the principal's money. It is important to select a trusted person to serve as the agent or attorney in fact.

    Source:

    Nolo's Plan Your Estate; Attorney Denis Clifford; 2008

Copyright 2018, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy