what is a financial power of attorney responsibilities?

Some of the responsibilities and duties a Financial POA can perform might include:

• Banking and other transactions
• Beneficiary transactions
• Claims/litigation
• Estate transactions
• Government benefits management (Medicare/Unemployment/Social Security)
• Investment management
• Making charitable gifts
• Paying bills
• Property management
• Retirement benefits

More items...

Full Answer

What are the duties of the financial power of attorney?

May 24, 2021 · Serving as a financial power of attorney (agent) is a serious responsibility. It is important to keep great records, and to make sure each transaction you make on behalf of the principal is in line with the fiduciary duty you have been granted. Naming an agent before times of crisis is very important.

Why do I need a financial power of attorney?

A Financial Power of Attorney is a component of your Estate Plan that ensures financial matters in your estate and are handled appropriately and responsibly. Knowing that your financial responsibilities, investments, retirement, bills and everything else in your financial world is in good hands can be a great source of comfort.

Who needs a financial power of attorney?

Responsibilities of a Financial Power of Attorney. The concept of a Power of Attorney (POA) sounds simple, but there is a lot to know about this important part of an estate plan, says the Rushville Republican in “Financial power of attorney responsibilities.”. Whether you are named as someone’s power of attorney or you are considering who to name on your behalf, it is …

What is a general financial power of attorney?

Jun 26, 2019 · Each financial power of attorney is specialized to the needs of the individual. Normally, the person entrusted with financial power of attorney can deal with: Paying rent and other bills Paying your taxes Buying insurance for you Paying medical bills Accessing your banking accounts Buying and selling assets at your request

What can a POA do?

In these cases, the agent can do whatever the principal would do with respect to his or her own property. That includes opening bank accounts, buying and selling property, managing investments, filing taxes, cashing checks and closing accounts.

When is a POA effective?

A POA that is drafted to be immediate is effective the moment it’s signed by the principal.

Who signs a POA?

The person who signs the POA is called the “principal” and the person to whom authority is given is refer. The concept of a Power of Attorney (POA) sounds simple, but there is a lot to know about this important part of an estate plan, says the Rushville Republican in “Financial power of attorney responsibilities.”.

What is an agent in real estate?

An agent is a considered a fiduciary of the principal, which means that he has a legal duty to act in the principal’s best interest.

What a Financial Power of Attorney Can Do

A financial power of attorney is a document that in regards to your financial matters can give as little or as much responsibility as you wish to your designee.

Is a Financial Power of Attorney All or Nothing?

The wonderful thing about a financial power of attorney is that it includes only what you want it to.

What If My Financial Situation Changes?

There is what is referred to as a springing power of attorney. With this type of financial power of attorney, you can give your designee the ability to make decisions only when you are incapacitated, or at some other time or event to occur in the future.

Let Us Help With your Financial Power of Attorney

If you have questions about setting up a power of attorney of any type, the experienced staff at Atlanta Wills + Trusts Law Group by Refeca Law LLC are here to help answer them.

What is financial power of attorney?

What Is a Financial Power of Attorney? A financial power of attorney is a particular type of POA that authorizes someone to act on your behalf in financial matters. Many states have an official financial power of attorney form.

How does a POA work?

Financial Power of Attorney: How It Works. A durable financial power of attorney can avoid financial disaster in the event you become incapacitated. You can also use a POA to allow someone to transact business for you if you are out of town or otherwise unavailable. If you need to give another person the ability to conduct your financial matters ...

What is a POA?

What Is Power of Attorney? A power of attorney (or POA) is a legal document that authorizes someone to act on your behalf. The person who gives the authority is called the "principal," and the person who has the authority to act for the principal is called the "agent," or the "attorney-in-fact.".

When does a POA become effective?

When Does a Power of Attorney Become Effective? Depending upon how it is worded, a POA can either become effective immediately, or upon the occurrence of a future event. If the POA is effective immediately, your agent may act on your behalf even if you are available and not incapacitated. This is done when someone can’t be present ...

When does a POA end?

The authority conferred by a POA always ends upon the death of the principal. The authority also ends if the principal becomes incapacitated, unless the power of attorney states that the authority continues. If the authority continues after incapacity, it is called a durable power of attorney (or DPOA). In cases of incapacity, a DPOA will avoid ...

Can a third party accept a POA?

The big question about any POA is will a third party accept it? Generally, a third party is not required to accept a power of attorney. However, some state laws provide for penalties for a third party who refuses to accept a power of attorney using the state’s official form. One thing you can do to help assure its acceptance is contact anyone you think your agent may need to deal with and be sure they find your POA acceptable.

What is incapacity in medical terms?

Incapacity is where the principal is certified by one or more physicians to be either mentally or physically unable to make decisions. This could be due to such things as mental illness, Alzheimer’s disease, being in a coma, or being otherwise unable to communicate.

What are the duties of a power of attorney?

What Are the Duties of Power of Attorney? What Are the Duties of Power of Attorney? A power of attorney is a legally enforceable document that grants one person, the agent, the ability to act on behalf of another person, the principal, in specific matters ranging from health care to the management of personal property and finances.

What powers does a principal have?

A principal may execute a limited power of attorney for a specific purpose, such as for the purchase or sale of property or handling a certain bank account. A principal can also grant an agent powers to make health care decisions on the principal's behalf.

What are the duties of an agent?

Through one or more powers of attorney, the principal can authorize an agent to manage numerous tasks, including entering into contracts, dealing with real and personal property, handling the principal's financial and tax affairs, and arranging for the principal's housing and health care. The agent's primary duty is ...

What is a financial power of attorney?

A financial power of attorney is a document allowing someone (the “attorney-in-fact” or “agent”) to act on the principal’s behalf. It normally allows the attorney-in-fact to pay the principal’s bills, access his accounts, pay his taxes, buy and sell investments or even real estate. Essentially, the attorney-in-fact steps into the shoes ...

Who is responsible for paying taxes on a principal's estate?

Many powers of attorney grant the agent authority to pay the principal’s taxes. If this is the case, you will be responsible for filing and paying taxes during the principal’s lifetime. If the principal passes away, however, the executor of the principal’s will is responsible for preparing any final taxes.

Who is Jeffrey Gaffney?

Jeffrey Gaffney is a 25-year attorney and retired Navy captain. A graduate of the University of San Diego School of Law, he began his practice helping aggrieved investors recover from unscrupulous stockbrokers. He is an arbitrator for the New York Stock Exchange, the Pacific Stock Exchange and FINRA. Gaffney also serves as a legal fellow with FreeWill, a digital estate planning platform. After years of securities work, he changed his emphasis to trusts and estates as a way to further protect people and their futures.

What to do if you don't know the principal?

If you don’t know the principal’s expectations, then always act with their best interests in mind.

What to do if you don't have a trust?

If the person you are caring for does not have a trust, you should consider setting one up for them (assuming the power of attorney grants you that authority). This is especially important if the principal is gravely ill. Speak with a qualified attorney for help.

What is a power of attorney?

A Power of Attorney is a written document by which an individual (the grantor) appoints someone (the Attorney) to act on their behalf concerning financial and/or personal care matters.

What can a professional do for a grantor?

A professional can work with you to ensure that the grantor’s investments are managed with the degree of care, skill and diligence required. They can: Assist you with customized asset allocation appropriate to the circumstances Work with you to develop a viable investment policy statement Keep accounts of all transactions