What is a financial power of attorney?

| May 23, 2019 | estate planning

One of the biggest skills that a person must learn as they grow up and become an adult is how to manage their money. This does not just mean understanding investments and how to save, but also how to budget, plan for fixed costs and make payments on bills and other expenses. All across Ohio individuals deal with financial matters on an almost daily basis.

When a person fails to take care of their financial obligations they may run into trouble. Unpaid bills can result in liens and legal troubles, whereas an unpaid mortgage may result in the start of foreclosure proceedings. In the event that a person cannot manage their own financial affairs due to an illness, injury or other cause, it is important that they have someone in place to act in their best interests and take on their financial needs.

This may be accomplished through a financial power of attorney document. A financial power of attorney names a person as having the power to act on someone else’s behalf when they are incapacitated, so that their financial affairs continue to be addressed. A person who is named in a financial power of attorney document may pay their charge’s bills, make investment decisions and handle business affairs on behalf of their incapacitated associate.

There are legal requirements for establishing financial powers of attorney in Ohio and, when they are not met, individuals may find that their documents are not enforceable. It is advantageous to learn more about power of attorney documents in the estate planning process.