Powers of Attorney (Financial)

A Power of Attorney allows you to appoint a trusted individual (your “agent”) to manage your financial and legal affairs. This is an essential component of incapacity planning, particularly if you become unable to handle your own affairs.

A properly drafted Power of Attorney can allow your agent to access bank accounts, pay bills, manage investments, operate a business, and complete financial transactions on your behalf. Without this authority, a conservatorship of the estate may be required.

Powers of Attorney can be tailored to your specific needs. They may be general (granting broad authority) or limited (granting authority for specific transactions or time periods). They may also be effective immediately or “springing,” meaning they become effective only upon a specified event, such as incapacity.

Even if you have a trust, a Power of Attorney is still necessary as part of a comprehensive estate plan. While a trustee can manage assets held in the trust, the trustee does not have authority over assets outside of the trust, such as retirement accounts or certain financial accounts. A Power of Attorney allows your agent to manage those assets if you become incapacitated.

A Power of Attorney applies only to financial and legal matters and does not grant authority to make medical decisions. For health care decisions, a separate Advance Health Care Directive is required.

Hempel & Mudd Law can help you determine the appropriate type of Power of Attorney and ensure it is properly prepared as part of a comprehensive estate plan.