A power of attorney is in and of itself a very important document when putting together your estate plan. There is more to it than just naming a power of attorney. If you so choose, you can name a variety of different powers of attorney, one of them being a financial power of attorney. This someone you choose to handle your finances when you become incapacitated or mentally unfit to make decisions.
The main responsibility of a financial power of attorney is to handle the finances of a person should he or she be unable to do so for whatever reason. This includes paying bills, paying off debts, making payments for other necessities and much more. The financial power of attorney simply uses the bank accounts of the person who put them in charge to handle all of the finances.
The person chosen to act as the financial power of attorney is required to act in the best interests of the principal, which is the person who chose the power of attorney. The power of attorney is not allowed to operate in their own best interest, even after the principal passes away or becomes incapacitated. The wishes of the principal must be fulfilled by the power of attorney.
In some instances, a power of attorney can be issued payment for their services. This typically occurs when the person chosen to serve as power of attorney by the principal is not a family member but instead an attorney or other trusted professional.
If it’s time to update your estate plan, or choose a financial power of attorney in Cincinnati, an experienced estate and probate attorney can help.
Source: Caring.com, “Power of Attorney for Finances,” accessed Aug. 11, 2017