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Why a financial power of attorney is helpful

On Behalf of | Sep 2, 2022 | Estate Planning

When you’re picking a power of attorney, you may start by thinking about the medical side of things. You want to choose an agent to make your medical decisions for you. You know that you could become incapacitated at a later date, and it’s important to know that someone you trust is making those decisions. 

But you can also use a financial power of attorney. What benefits does this give you and why may want to consider using both?

Planning for the details 

A financial power of attorney is important because there may still be a lot of legal and financial activities that have to be carried out, even if you’re incapacitated.

For example, say that you suffer from a stroke that leaves you without the cognitive abilities to do things like paying your taxes, paying your mortgage, buying home insurance and the like. However, you haven’t suffered any physical disabilities at all, and you can certainly go on living in your home, especially with the help of an in-home caregiver.

In a situation like that, you still need someone to make sure that all the details get taken care of. They need to be able to access your accounts and your financial records. The power of attorney gives them the ability to do this so that they can assist you in all the ways that are necessary. 

You do not have to pick the same person to be your medical power of attorney and your financial power of attorney, but you can do so if you would like. Make sure you know all of the steps you need to take to make this legal designation.