A power of attorney is a great responsibility to bestow. While there are different types of power of attorney (POA), a financial POA handles a principal’s financial affairs. Whether you are researching for yourself or someone else, it’s best to start with the basics. Learn the roles within a POA agreement, as well as the responsibilities of a financial power of attorney.
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Power of Attorney Roles
A power of attorney is a legal document in which a person grants power to an agent to act on their behalf. The principal is the person granting a POA. The person designated as an agent receives the power to act on the principal’s behalf. A person may choose to grant a power of attorney for many reasons. Perhaps it is the best course of action if they know they are not able to care for themselves, or need someone to handle their affairs on their behalf.
Whatever the reason, you should be aware of these roles as well as the responsibilities.
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Financial Power of Attorney Responsibilities
There are different types of power of attorney, and they fulfill unique purposes. A financial power of attorney is just as it sounds, a person acting on your behalf regarding your finances. When a principal appoints a person a financial POA, the agent may fulfill some or all of these responsibilities:
- Control over bank accounts
- File and sign taxes
- Handle investments and retirement funds
- Collect debts
- Manage property
- Apply for public resources (Medicaid, veterans benefits)
A power of attorney is an important estate planning tool and is just as important as having a will. This legal document may be in your best interest if you become incapacitated, whether suddenly or over time. When you pass away, the power of attorney agreement ends and the terms of the trust begin.
Do you have a question about the responsibilities of a power of attorney? Contact the team at Marcia Campbell, CPA.
If you need help, please contact us by filling out our Contact Form or by giving our office a call at +1(951)686-3608.
As the most experienced CPA in the Inland Empire who specializes in working with seniors, Marcia L. Campbell is committed to helping each client thrive by caring for their personal and financial wellbeing with genuine interest, well-established expertise, and a focus on respectful partnerships. Marcia’s team specializes in a number of services including elder & financial care, court & trust accountings as well as private fiduciary and tax services. At Marcia L. Campbell, CPA, we understand the importance of our clients’ individual needs and are committed to helping them make the best personal and financial decisions for their future.