A power of attorney (POA) allows an agent to represent a principal on medical and financial dealings. A financial POA is a practical solution if you want your financial affairs managed when you are not around or are incapable of handling them yourself. Here are a few aspects you should know before you create a financial POA.

What Does a Financial Power of Attorney Do?

A financial POA is a legal document that enables one person to name another as an agent who will act on their behalf in business and financial matters. You can take advantage of this tool to prepare for your future care needs. Among other tasks, you can ask your agent to maintain your records, file and pay your taxes, collect government benefits, operate your business, and handle bank transactions. Remember that a POA authorizes your agent to make autonomous decisions unless a court of law challenges and revokes this right. As such, you should choose an agent who has consistently displayed honesty and competence; someone you know will act in your best interest.

The effectivity of your financial power of attorney can be immediate or contingent on a future event. If you make the POA effective immediately, your agent can begin representing you even if you are available. This situation offers a convenient way for you to carry out transactions without being physically present.

How Does a Financial POA Differ from a Medical POA?

A medical POA allows an agent to act in the same capacity as a financial POA agent, but their authority is limited to healthcare matters. The agent can make decisions such as your care providers or physicians, what you eat, where you will live, and the medical care you receive. If you are considering appointing different people as your financial and healthcare agents, make sure they work well together. Otherwise, choose one person who will fulfill both roles.

When considering your future care needs, trust the Rutherford Law Office in Chillicothe, OH, to guide you. They help ensure your beneficiaries follow your wishes and handle your affairs competently. Whether you need an estate planning attorney, a family law expert, or a divorce lawyer, Attorneys Sherri K. Rutherford and Aaron M. McHenry are available to offer superior representation and first-rate legal services. Call them today at (740) 775-7434 to schedule an appointment, or visit their website to learn more about their practice.