
A power of attorney (POA) is a tool that allows a loved one to help protect your medical, financial, and legal interests. Essentially, a POA is a legally-binding document that enables someone else to act on your behalf in certain situations. For instance, a power of attorney can be useful for older people and those who want someone they trust to make decisions for them if they cannot. Developing a Windsor, CO financial power of attorney document can be effective for your future and how certain circumstances are handled. If you have questions about a POA or other estate planning documents, contact our team at W.B. Moore Law.
Financial Power Of Attorney (POA)
If you do not have someone chosen for this role ahead of time, a family member may have to attend court to have a guardian appointed if you become incapacitated and cannot make decisions for yourself. That process can be public, expensive, and time-consuming in a situation where time may be of the essence. A financial POA can be a reliable tool to help you plan for the future, just in case one day you are not able to make sound decisions due to a condition such as dementia, brain injury, or other impairment that can affect mental functioning.
Protecting Against Abuse
There is a risk when it comes to establishing a power of attorney. This gives another person a great deal of power over your finances without strict oversight. So who you choose to have this role will be vital to how a situation may be handled in the future. You want someone who will do what is in your best interest always. Financial power of attorney abuse can take on many forms, such as:
- Your agent may spend money on themselves instead of your benefit
- Your agent may pressure you to give them authority when you don’t want to
- Your agent may make decisions that you did not give them authority for, such as making gifts or altering your chosen beneficiaries on retirement plans or insurance policies
You can protect against your POA being abused by telling other family members, friends, and financial advisors about your documentation so they can watch out for you too. Only appoint someone as your agent who you really trust and confirm that they know what your wishes would be in specific situations. In your documentation, you can write that you require your agent to report to another person on any financial transactions that occur on your behalf.
W.B. Moore Law
A financial power of attorney (POA) can be a useful document for your estate plan. This gives someone the power to make financial decisions if you for some reason become unable to. If you want to get started creating your POA or another estate plan document, please contact our team at W.B. Moore Law as soon as you can. To begin creating your CO financial power of attorney, we are only an email or phone call away. We hope to hear from you today!