Protect your family with a financial power of attorney
Nominate a person to make decisions about your financial affairs if you're unable to speak for yourself. For personalized advice, schedule a call with an attorney from our network. Power of attorney plans start at $39.
A financial power of attorney document, also known as a durable power of attorney, is a legal document that allows you to appoint someone to manage your financial affairs. A financial power of attorney is an important part of any estate plan.
A financial power of attorney is typically used when the person who created it can no longer manage their affairs. This is generally due to a medical issue, aging, a disability, or simply being away for an extended period of time.
Who is involved with a financial power of attorney?
Principal: Person who created the power of attorney, who must be over 18.
Attorney-in-fact: A trusted designee named in the power of attorney who has the authority to act on someone's behalf. The attorney-in-fact typically cannot act unless the principal has been deemed incapacitated by a doctor.
Notary public: Depending on state law and specific government agency requirements, the principal may need to have a notary public sign the power of attorney.
Power of attorney options
There are many different ways to customize a power of attorney to cover different needs. Here are some of the common options:
Durable: Helps you manage your estate, legal affairs, or financial transactions and remains in effect if you become incapacitated.
Non-durable: Expires if you become physically or mentally incompetent or incapacitated.
Springing: Allows you to delegate a proxy to help you make decisions if you are ever declared physically or medically incompetent.
Immediate: Lets your agent begin taking actions on your behalf as soon as you sign.
Limited: Places restrictions on what the healthcare proxy can decide for you.
Healthcare or medical: Specifies a healthcare proxy or healthcare agent who can make medical decisions on your behalf if you’re unable. Our advance healthcare directive includes a medical power of attorney.
Military: Covers the needs of service members on duty, including paying bills and handling government benefits.
Choose the power of attorney package that meets your needs.
Select an attorney-in-fact and discuss their responsibilities.
Create your power of attorney, consulting with an attorney as needed.
Ensure you sign the power of attorney according to your state's laws.
Update your power of attorney following any life changes.
How to choose an attorney-in-fact for a power of attorney document
Your attorney-in-fact will be responsible for important decisions while you're alive. It's important that you choose someone who has your best interests at heart and is responsible, trustworthy, and a strong communicator as your attorney-in-fact for a power of attorney agreement. For many people, this person is a trusted family member, like a parent or adult child, or close family friend.
Trust your attorney-in-fact Your attorney-in-fact will have access to your bank accounts at all of your financial institutions. They'll be able to pay bills, handle a mortgage, pay taxes, and access your safe deposit box—make sure you trust the person you pick.
Avoid disputes Be aware that if you choose a single family member, disputes may arise. On the other hand, if you select more than one person, it may take longer for them to agree on a decision.
What should I consider before appointing my attorney-in-fact?
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Are they reliable?
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Do they have time?
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Are they detail-oriented?
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Are they a good communicator?
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Will they work well with my spouse?
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Do they care enough about me to make good decisions?
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If I’m incapacitated, will they be too grief stricken to take action?
The attorney-in-fact is a fiduciary, which means they must act responsibly and in a way that is fair to the person whose affairs they are managing—in this case, you.
Here are some questions you can ask your attorney-in-fact to ensure they're up for the job:
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Do you have any questions about what your responsibilities might be?
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Do you have concerns about taking on any of these duties?
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Do you have time in your schedule to fulfill these responsibilities?
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If something happens to me, will you be able to focus on the tasks you need to complete, or will you be overwhelmed by emotion?
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Do you have any concerns about potentially managing my money and bills and your own simultaneously?
How do I update my power of attorney?
You (the principal) can amend your power of attorney, or revoke it and sign a new one. Be sure to check your state's requirements before you make any of these updates.
What to include in a power of attorney
Your power of attorney form should include these essentials:
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Date you created the power of attorney
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Start date and/or expiration date, if applicable
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Your name and your chosen agent's name and your addresses
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Scope of the attorney-in-fact's authority
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Whether your power of attorney has durable power
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Any specific wishes for your agent
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Your signature, as well as any required notary or witness signatures
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