{"id":355761,"date":"2016-04-04T10:45:23","date_gmt":"2016-04-04T15:45:23","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/elder\/elder-care-law\/power-of-attorney-for-financial-matters.html"},"modified":"2026-08-03T07:27:00","modified_gmt":"2026-08-03T12:27:00","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":"Financial Power of Attorney for an Older Adult"},"content":{"rendered":"\n
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Financial Power of Attorney for an Older Adult<\/h1>\n\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\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

\n \n <\/i>\n Fact-Checked\n <\/summary>\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\n\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.” The agent must act in the older adult\u2019s best interests, keep all funds separate, and document decisions to avoid disputes or liability.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

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\u00a0audits\u00a0of your activities or expose you to liability.<\/p>\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. Keep reading to learn more about how financial power of attorney works for older adults, and what loved ones should know when managing an elderly loved one’s finances as a POA.<\/p>\n

You can\u00a0create a DIY financial power of attorney document<\/a> with a loved one at home. But if assets are significant or the financial situation is complex, consult an estate planning attorney<\/a> for legal advice tailored to you.<\/p>\n

5 Types of Power of Attorney<\/h2>\n

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

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  1. General Power of Attorney:<\/strong>\u00a0A 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>\n
  2. Limited Power of Attorney:<\/strong>\u00a0A 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>\n
  3. Durable Power of Attorney<\/strong>:\u00a0A durable POA allows an agent to continue acting on your behalf after you become incapacitated.<\/li>\n
  4. Non-Durable Power of Attorney:<\/strong>\u00a0A non-durable POA expires when you become incapacitated.<\/li>\n
  5. Springing Power of Attorney:<\/strong>\u00a0A springing POA goes into effect on the occurrence of a specific event or condition. It can also end at a specified time.<\/li>\n<\/ol>\n

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

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