V. Durable power of attorney for finances.
A durable power of attorney durable power of attorney
A legal document conveying authority to an individual to carry out legal affairs on another person's behalf. for finances allows you to designate des·ig·nate
tr.v. des·ig·nat·ed, des·ig·nat·ing, des·ig·nates
1. To indicate or specify; point out.
2. To give a name or title to; characterize.
3. a person, your "agent," to take care of your finances if you are unable to do so yourself. A general power of attorney for finances authorizes your designated agent
Alternatively, you can limit the powers of your agent, in a limited power of attorney for finances, to a specific timeframe, or to specific functions.
Executing a general or limited power of attorney for finances can save the expense and difficulty of a conservatorship Conservatorship
A circumstance in which the court declares an individual unable to take care of legal matters and appoints another individual, known as a conservator, to do so.
This is sometimes referred to as "LPS Conservatorship. or guardianship proceeding, or can prevent intervention A procedure used in a lawsuit by which the court allows a third person who was not originally a party to the suit to become a party, by joining with either the plaintiff or the defendant. by blood relatives in one's financial affairs, in the case of incapacity The absence of legal ability, competence, or qualifications.
An individual incapacitated by infancy, for example, does not have the legal ability to enter into certain types of agreements, such as marriage or contracts. .
The designation of power of attorney should not be taken lightly, however. By designating a person to be your agent, you are giving your agent very broad rights to handle your finances, including the ability to empty your bank account. Your agent should be someone who not only knows how to handle money, but also someone you trust, without reservation.
You should provide copies of your Durable Power of Attorney for Finances to your bank and other financial institutions. Some institutions require you to use their own form, so you should check with your bank and other institutions to determine if this is the case.
A sample durable power of attorney for finances can be found at Appendix C.