As an independent person, you’re used to taking care of your own finances. This is generally the case for most people.
Unfortunately, however, life can be unpredictable. For instance, people can fall seriously ill and become incapacitated, even at a young age. For elderly people, incapacitation is inevitable.
The good news is that you can prepare for all scenarios by drafting an estate plan. In your plan, you may opt to designate someone as your financial power of attorney. What does a financial power of attorney do?
The role of a financial power of attorney
Broadly speaking, a financial power of attorney makes financial decisions on your behalf. The scope of their duties actually depends on your instructions. For instance, you can limit the financial power of attorney’s role to paying bills on time. Also, the power of attorney may only be active until you recover, if that is expected. In a nutshell, the role of a financial power of attorney is to make financial decisions on your behalf while you are not in a position to do so.
What type of person should you look for?
The role of financial power of attorney is a very important one. You want to nominate a person that you trust completely, particularly with money. Additionally, the person you choose should not be self-serving. They may have to make important decisions quickly that impact the assets in your estate, and the motivation for this should not be self-profit.
The financial power of attorney in your estate plan is only one of several aspects that should be addressed. To make sure that your estate plan truly reflects your wishes, it will be beneficial to seek some legal guidance.