In many ways, creating a document designating powers of attorney for your estate plan can be beneficial. For example, you can grant a reliable individual the ability to make important decisions related to your finances when you are incapable of doing so.
Learning about financial POA documents can help you enhance your estate plan and choose an appropriate representative.
Financial power of attorney
Although some power of attorney documents assign various responsibilities to a single person, you can also choose multiple people to manage different tasks on your behalf. Many estate plans include separate POA documents for financial and medical decisions. This can be especially advantageous if you are a business owner or have a large estate with significant assets.
Your POA document can be useful if you become seriously ill or injured and cannot complete tasks such as paying bills and managing accounts. However, a POA could also be relevant if you frequently travel, especially overseas, and need someone else to sign off on important financial dealings while abroad.
Selecting an agent
It is important to choose a trustworthy person to represent you when you are incapable of making major decisions. The person you name on your financial POA document should be dependable and have a basic understanding of your assets. However, you do not need to select a finance professional. Finally, when creating your POA documents, you should discuss your plans with the agent you are naming and confirm that they can take on the responsibility.
Including a financial POA document in your estate plan helps ensure someone reliably manages your assets and properties if you are absent or unwell.