{"id":355761,"date":"2016-04-04T10:45:23","date_gmt":"2016-04-04T15:45:23","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/elder\/elder-care-law\/power-of-attorney-for-financial-matters.html"},"modified":"2023-07-27T07:27:34","modified_gmt":"2023-07-27T12:27:34","slug":"power-of-attorney-for-financial-matters","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/elder\/elder-care-law\/power-of-attorney-for-financial-matters.html","title":{"rendered":"Power of Attorney for Financial Matters"},"content":{"rendered":"\n
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Power of Attorney for an Older Adult's Financial Matters<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Key Takeaways<\/h2>\n

A financial power of attorney (POA) is a legal document that allows you to manage a loved one’s or elderly parent’s financial matters. It is also sometimes called a durable power of attorney for finances. It is a type of advance directive that names you as your loved one’s agent or "attorney in fact."<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n

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As a financial POA, you have a fiduciary obligation to act in your loved one’s best interests. This means you may have to make some difficult decisions. As such, problems can arise when family members second-guess these decisions. Such disputes can result in audits<\/a> of your activities or expose you to liability.<\/p>\r\n

Despite any disputes that may arise, a financial POA is an important long-term care planning document. It ensures that you comply with your loved one’s financial wishes if they become incapacitated.<\/p>\r\n

You can create a DIY financial power of attorney document<\/a> with a loved one at home. But, if their assets or financial situation is complex, you should consult an estate planning attorney for legal advice.<\/p>\r\n

Five Types of Power of Attorney<\/h2>\r\n

It is important to understand the differences between the types of power of attorney.<\/p>\r\n

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  1. General Power of Attorney: A general POA gives an agent broad power to make financial, medical, and legal decisions on your behalf. It is generally non-durable, meaning the agent’s powers expire upon your incapacitation. You can designate a general power of attorney as durable, but this is less common given an agent’s broad powers and control.<\/li>\r\n
  2. Limited Power of Attorney: A limited power of attorney allows an agent to act on your behalf for specific purposes. Once that specific purpose is fulfilled, the limited POA expires.<\/li>\r\n
  3. Durable Power of Attorney: A durable POA allows an agent to continue acting on your behalf after you become incapacitated.<\/li>\r\n
  4. Non-Durable Power of Attorney: A non-durable POA expires when you become incapacitated.<\/li>\r\n
  5. Springing Power of Attorney: A springing POA goes into effect on the occurrence of a specific event or condition. It can also end at a specified time.<\/li>\r\n<\/ol>\r\n

    How Do I Take Control of a Loved One’s Finances?<\/h2>\r\n

    Once you have the proper legal authority, you can access your loved one’s:<\/p>\r\n