What is the role of a financial power of attorney?

A financial power of attorney is a crucial legal document that allows an appointed individual, known as the attorney-in-fact or agent, to manage financial matters on behalf of someone else, known as the principal. This document is especially important in cases where the principal becomes incapacitated or unable to make decisions on their own.

Responsibilities of the appointed individual

Once granted the authority through a financial power of attorney, the appointed individual has a range of responsibilities:

• Managing financial decisions: The agent is empowered to make financial decisions, such as paying bills, managing investments, and handling banking transactions.
• Legal representation: The agent can represent the principal in legal and financial matters, such as signing contracts or tax documents on their behalf.
• Protecting assets: It is the agent's duty to act in the best interests of the principal and protect their assets from misuse or fraud.
• Reporting and accountability: The agent is typically required to keep accurate records of all financial transactions and provide periodic reports to the principal or other designated individuals.

Overall, a financial power of attorney is a critical tool in ensuring that someone trusted can step in and manage financial affairs when needed, providing peace of mind and protection for the principal.