Five Important Estate Planning Documents: Financial Power of Attorney

by Norris Law Group on October 29, 2014

Five Important Estate Planning Documents: Financial Power of AttorneyYou may have seen or heard the phrase “power of attorney” in articles or even on television. But do you know what it means? Power of attorney simply refers to the power to make decisions for someone else. For example, in the event that a person becomes unable to make decisions due to injury or illness, a person with power of attorney over the affairs of the incapacitated person may make decisions for him or her.

There are different types of power of attorney. One that is commonly employed is financial power of attorney, or the power to make financial decisions for someone else. This may seem counterintuitive; why would you want anyone to make financial decisions for you when you can do so perfectly well on your own. Well, yes, today you may be capable of making your own decisions. But in case some catastrophic event occurs and you are no longer able to do so, you would want someone whom you trust to make decisions involving your money, wouldn’t you?

An October 2014 article on CNBC.com goes into the issue of why you might want a financial power of attorney in some detail. Setting up a financial power of attorney ensures that your personal wishes involving your money will be honored in the event of your incapacity. If you don’t designate a financial power of attorney and then are unable to make your own decisions, the courts can decide who will make these decisions for you. The court will usually designate a family member, but it may not be the one whom you would choose.  By choosing your own financial POA, you keep control over any powers you chose to grant to your “agent.” These powers may range from permission to access your accounts to control over all of your financial decisions. A financial power of attorney can also help to preserve the relationships among your loved ones by clarifying your wishes so that there is no question about what you would want if you could speak for yourself.

Attorney Graham Norris and his associates at the Norris Law Group serve the residents of Utah County, UT and throughout Utah, Wyoming and Idaho. Contact them today at 801-932-1238 or online for a free consultation.

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