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Financial power of attorney may prevent certain money issues

On Behalf of | Oct 29, 2020 | Powers of Attorney

Most California residents want to be in control of their own affairs as much as possible. When they cannot, it is typically best to have someone trusted and responsible handle financial matters for them. Situations can arise in which individuals cannot make important decisions themselves, and knowing that arrangements have been made to ensure a trusted person is in charge could bring relief. Having power of attorney documents in place is crucial.

financial power of attorney gives decision-making abilities to an agent that the principal can name ahead of time. Making sure that a specific individual has this power could save time and trouble later, especially if the principal becomes incapacitated and cannot handle those matters him or herself. The POA agent can step in quickly and hopefully avoid any lapse in payments or other issues.

The principal can also add restrictions to this arrangement in efforts to avoid an abuse of power. A springing power of attorney would mean that the agent would not have the power to act until it has been proven that the principal cannot handle financial matters. It may also be necessary to take additional steps with certain financial institutions or benefits programs for an agent to have power. Some agencies do not readily accept POA documents, especially when presented by the agent.

Understanding the scope of a power of attorney agent and possible restrictions can sometimes make California residents more open to the idea. After all, not many people want to appoint someone who could take financial control at any time for any reason. Discussing this document’s creation with knowledgeable attorneys could help interested parties determine how to create an arrangement that best suits their needs.


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