As the name implies, a financial power of attorney (POA) grants the trusted agent the authority to act on financial matters on behalf of the principal. The agent in the POA is also known as the attorney-in-law, while the principal is the person who grants the trusted agent the authority to transact on his behalf. Also known as a general power of attorney, here are things you must understand about this concept.
The Basics
The financial POA is a legal document, and there are states in the country that considers such as durable, meaning, it remains in effect even after the principal-agent becomes incapacitated. Once the principal dies, a financial POA letter is automatically extinguished. This is commonly issued when the principal becomes disabled, is ill, or is away or not physically present when signing important documents.
Roles of The Trusted Agent
The authority granted to the trusted agent can either be restrictive (limiting the duties the agent performs) or broad (granting the trusted agent more duties to take on behalf of the principal). The trusted agent basically makes decisions not just about the principal’s finances via the POA. He or she can also decide when it comes to the other party’s medical health and property, or as explicitly provided in the POA.
Limitations
A financial POA grants the agent the power to transact on behalf of the principal when it comes to making financial decisions and transactions. He or she is limited to performing duties as outlined in the POA, and cannot do anything that goes beyond what the document allows. When making decisions, the agent must take into account the wishes of the principal. Nonetheless, the agent can exercise his or her authority in making decisions unless challenged and revoked in court.
Durability of POA
As mentioned a while back, a financial power of attorney may be considered durable in some states. However, in other states, the principal must have this specified if he or she wishes to make the POA durable. This can be added to specifications about powers granted by the principal to the agent before the POA takes effect.
Special Considerations With POAs
When putting a POA in effect, some states will require the document to be witnessed, signed by both parties (including the witnesses), and notarized. If the POA grants the agent the power to transact real estate assets on behalf of the other party, some states will request a copy of the document to be placed on file in the local land records office. There are also banks that have their own forms, thus making the process of executing the POA easier, most especially when the financial institution is notified by the principal regarding having a financial agent.
Enjoying Your Life When You Retire
Aside from signing a legal document that will allow another party to act on your behalf when it comes to personal transactions, you can also think about how to enjoy your life when you retire. The first thing that will come to mind is to enjoy independence while getting assistance from others. This is made possible if you move into personal care living homes where your needs are taken care of, as you exercise your independence. When there, you will also be able to get the best out of what the outside world offers. There are community events lined up for you when you choose Discovery Village At West End.
