Financial Power of Attorney (POA)
If you are in a coma or suffer from severe dementia, who pays your mortgage? Who files your taxes? Without a Financial POA, your family must go to court to establish a conservatorship—a public, expensive, and stressful process.
Types of Power of Attorney
| Type | Description |
|---|---|
| Durable | Remains in effect even if you become incapacitated. This is essential for estate planning. (A "non-durable" POA becomes void the moment you lose capacity). |
| Springing | Only goes into effect *after* you are declared incapacitated by a doctor (usually requires two physicians' signatures). While it feels safer, it can cause severe delays when time is of the essence. |
| Immediate | Takes effect the moment you sign it. The agent has the power to act immediately, so extreme trust is required. Many modern estate planners prefer immediate durable POAs to avoid the delays of a springing POA. |
What Can an Agent Do?
Depending on how it is drafted, an agent can pay bills, manage investments, sell real estate, file taxes, and even operate your business. They have a strict fiduciary duty to act in your best interest.