- What is a Financial Power of Attorney?
- A Financial Power of Attorney is a document that gives someone else the ability to make decisions for you about your finances, and that person is called either your “Agent” or your “attorney in fact.” California Trusts Online uses the term “Agent.”
- What powers can I give my Agent in a Financial Power of Attorney?
- You can give your Agent the authority over any of your assets that are in your name alone. This includes real estate, bank accounts, promissory notes, retirement accounts, investments, and business interests as long as they are not in your Trust.
- You can give your Agent the authority to act for you until the moment of your death. After death, your Executor (or other personal representative) is the one who would act for you.
- You can also give your Agent the ability to apply for government benefits on your behalf, to access safe deposit boxes for you, to use, apply for or cancel your credit cards, to manage your online data including your email and social media accounts. You can give your Agent the authority to interact with taxing authorities on your behalf.
- What powers are automatically included in California Trusts Online Financial Power of Attorney? (Note that these are automatically included since they are popular, however you can extend or limit these powers if you wish.)
- To demand, receive and obtain money.
- To pay any sums of money that you owe.
- To enter into, rescind and modify a contract and to perform under a contract.
- To purchase, sell, mortgage, refinance and lease real property.
- To prosecute, defend and compromise a claim.
- To retain, compensate and discharge an attorney, accountant or other assistant.
- To keep records of every transaction that your Agent performs.
- To prepare, sign and file any document to protect your interests.
- To reimburse your Agent for expenses incurred in acting as your Agent.
- To open, maintain or close bank and investment accounts.
- To apply for public benefits, governmental programs, insurance benefits, and retirement benefits.
- To insure, move and store your tangible personal property for your benefit.
- To pre-pay normal and customary funeral, burial and cremation expenses.
- To make gifts of your tangible personal property.
- To pay for your personal care.
- To assert any privilege that you hold, such as the attorney-client privilege and the doctor-patient privilege.
- What other powers do I have the option of including in my Financial Power of Attorney?
- To access, maintain and terminate your safe deposit box, and to remove the contents of your safe deposit box.
- To use and to close your credit cards.
- To access, use, transfer and delete your digital accounts and digital assets.
- To prepare and file federal and state tax returns.
- To act for you as a general partner, limited partner, or both.
- To create, amend, revoke, restate or terminate a Trust but not for your Agent’s benefit.
- To disclaim a payment from an estate or Trust.
- To change beneficiaries of any insurance policy, annuity, retirement plan, estate or Trust but not for your Agent’s benefit.
- Who is the “principal” in a Power of Attorney?
- The person who signs the Power of Attorney giving someone else the ability to make decisions for them is the principal.
- How do I choose an Agent?
- You should choose an Agent who is honest and responsible. You should choose someone whom you trust to care for you and not to use your money for the Agent’s own debts or interests.
- You should not choose someone who is pressuring you to name them as your Agent. You should not choose someone who owes money to you or to other people. You should not choose someone who is careless with their own finances.
- It is helpful, but not necessary, to choose someone who lives close to you so that your Agent can visit you and monitor your care.
- Can I limit my Agent’s ability to make decisions for me?
- Yes. You can limit the decisions that your Agent can make for you.
- Do I have to choose an Agent?
- Yes. You cannot make a Financial Power of Attorney without naming someone else to be your Agent.
- Can I choose more than one Agent?
- Yes, and we recommend that you choose several people to be your Agents in case your first choice is not available.
- Can I name Co-Agents?
- Yes, you can choose more than one person to be financial Agents for you at the same time. However, problems may arise if they disagree on how to handle your finances.
- When would I want to choose more than one person to act as my Agent at one time?
- Naming your Agents to act one at a time makes the Agent’s job easier. Naming your Agents as Co-Agents is helpful if you want them to watch over the other Agent and to know what is going on if you do not completely trust them to act in your best interest.
- When does my Agent take over?
- You can give your Agent this authority immediately or you can give this authority to your Agent only when you lack the capacity to make decisions for yourself.
- How do I change my Financial Power of Attorney after I sign it?
- Once you sign the Financial Power of Attorney, the only way to change it is to sign a new Financial Power of Attorney.
- Someone is making me sign this Power of Attorney. What should I do?
- If anyone is pressuring you to make this Power of Attorney and you do not feel comfortable signing it, you should call the Eldercare Locator at 800-677-1116 or 911.