What is a Financial Power of Attorney (POA), and how do I create one?

A Financial Power of Attorney (POA) is a legal document that grants someone you trust the authority to manage your financial affairs on your behalf. This person, known as your "agent" or "attorney-in-fact," can handle tasks such as paying your bills, managing your investments, filing your taxes, and conducting real estate transactions.

Key points about a Financial POA:

1. Grants Financial Decision-Making Authority: Your agent has the legal authority to make financial decisions and transactions on your behalf, as specified in the POA document.
2. Can Be Durable or Non-Durable: A Durable POA remains in effect even if you become incapacitated, while a Non-Durable POA is void if you become incapacitated.
3. Can Be Springing or Immediate: A Springing POA comes into effect only when a specified event occurs, such as incapacitation. An Immediate POA is effective as soon as it's signed.
4. Provides Peace of Mind: A Financial POA ensures that your financial matters will be handled by someone you trust if you're unable to manage them yourself.

How to create a Financial Power of Attorney with Origin (Origin members receive a discount on our Full Will and Trust Plans. Not a member yet? Join here!):

1. Choose Your Agent: Select a trusted individual to serve as your agent. This could be a family member, close friend, or financial professional.
2. Provide Your Agent's Information: Enter your chosen agent's full legal name and contact information into the Origin platform.
3. Consider a Backup Agent: You can also appoint a backup agent in case your primary agent is unable or unwilling to serve.
4. Specify the Powers Granted: Decide which financial powers you want to grant to your agent and specify these in the POA instructions.
5. Sign and Notarize: Once you've reviewed your Financial POA, you'll need to download and sign it. Some states require notarization, go here for more information.
6. Distribute Copies: Provide copies of your Financial POA to your agent, backup agent, financial institutions, and anyone else who might need to be aware of it.

A Financial Power of Attorney is a crucial component of a comprehensive estate plan. It ensures that your financial matters will be managed according to your wishes, even if you're unable to manage them yourself.

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