A Financial Power of Attorney (FPOA) is a legal document in which the Principal person, gives another person, called the Agent, legal authority over their financial affairs. A Financial Durable Power of Attorney simply means the document continues in effect if the Principal becomes incapacitated and unable to handle matters on their own. A general Financial Power of Attorney gives legal authority to handle all financial affairs, whereas a limited (or special) Power of Attorney only gives legal authority to perform specific acts.  An FPOA can be changed at any time and/or terminated by notifying the Agent in writing.  An FPOA ends automatically when the Principal dies. Before appointing someone as your agent make sure you speak to them and they agree to take on this responsibility.

The FPOA needs to be notarized. Once your FPOA is completed, you need to provide copies to (a) your agent and alternates, and (b) any financial institution involved in the FPOA.

How to Complete an FPOA

The FPOA is a legal document to give authority to someone to handle your finances, such as paying your bills and working with your bank when you are unable to make financial decisions.  A durable financial power of attorney is effective even when you are not able to make decisions. The FPOA designates whom you want to pay your bills and handles your financial affairs, also known as your “Agent.”  It is a good idea to designate alternate representatives, in the event your primary (first) agent is not available, for whatever reason. The FPOA also has the authority to work with your long-term finances and sell your property, should you need that.