A power of attorney is a document by which an individual designates another individual to act on their behalf in financial matters. A power of attorney provides extensive powers to the person appointed to act. These powers usually include:
Handling banking transactions
Handling transactions involving U.S. securities
Entering safety deposit boxes
Buying, managing or selling real estate
Purchasing life insurance
Maintaining and operating business interests
Entering into contracts
Employing professional assistance
Exercising stock rights
Filing tax returns
Handling matters related to government benefits
Making transfers to revocable trusts
A power of attorney is an important tool in disability planning. Whenever a person is unable to handle financial matters, a power of attorney can be essential. A power of attorney can avoid the necessity of court proceedings to establish a conservatorship.
Because a power of attorney is not under the supervision of the court, it is very important to select a person whom you trust implicitly, who will act in your best interests, and upon whom you can rely to give full accounting of any and all transactions undertaken on your behalf. Unless a power of attorney provides otherwise, it is effective as soon as it is signed. A power of attorney results in another person having as much access and control over your finances as you have yourself.
Disclaimer:The information contained on this site is not intended to provide specific legal advice nor does it create an attorney-client relationship. An attorney-client relationship may only be created by an explicit agreement with one of the attorneys. We will not accept specific requests for legal advice or offer specific legal advice over the Internet. We do not intend to communicate with any person where such communication would violate any legal or ethical requirement in a jurisdiction.