DRAFTING FINANCIAL POWERS OF ATTORNEY

What Is A Financial Power Of Attorney?

A financial power of attorney (POA) is a legal document that grants a designated third party the authority to act on your behalf in financial matters. A financial POA creates a principle-agent relationship, and the designated third party becomes an attorney-in-fact for the principal. 

How Does A Financial Power Of Attorney Work?

A financial power of attorney allows a designated third party to manage the financial aspects of your estate in accordance with the terms and conditions set forth in the financial POA. Depending upon the language of the POA, the POA can either be effective immediately or upon the occurrence of a future event and end either upon the death of the principal or a defined time set forth in the POA, whichever is earlier. A POA authority will also end if you expressly revoke it, a court invalidates it, or the third party is no longer able to perform the fiduciary duties of an agent.  Some of the powers you may want to give your agent include the following:

• Buy, sell, maintain, and mortgage real estate and other property;

• Maintain and pay taxes on property or other everyday expenses;

• Invest in stocks, bonds, and mutual funds;

• Transact with banks and other financial institutions;

• Operate your small business;

• Buy or sell a vehicle;

• Transfer property to a trust;

• Hire an attorney;

• Buy and sell insurance policies and annuities; and

• Manage your retirement accounts.

At Wilson Legal Group, our estate lawyers utilize a team-based approach that benefits from having access to multiple attorneys with substantive years of experience in many practice areas. Whatever your estate or trust needs may be, our business attorneys have the talent, resources, and expertise to meet them in an efficient, timely, and cost-effective manner.

What Assets Are a Part Of A Person's Estate?

The Internal Revenue Service (IRS) has defined a person's estate as the fair market value of everything a person owns at the time of your death minus debts. The totality of a person's estate would include but is not limited to the following: bank accounts, stocks and bonds, real estate, business interests and property, personal property, and life insurance policies. Items like cars, jewelry, coin collections, and artwork would be considered personal property for the purposes of a last will and testament; however, the proceeds of life insurance would not be personal property as they can only pass through the beneficiary designated on the insurance policy.