What Is Power of Attorney for Finances?

By Joseph L. Matthews, Caring.com Expert

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Quick summary

A power of attorney for finances is a document that appoints a person -- or sometimes an institution such as a bank or trust company -- to handle someone's financial affairs. A power of attorney for finances can also be used to make life easier for your parents, for example, or loved ones even though they still make decisions and handle some financial matters themselves. Or it can be used to handle all their financial matters when they're incapable of doing so themselves. For information about how to set up a power of attorney for finances, see Power of Attorney for Finances: A Step-by-Step Guide.

First, however, it's a good idea for you and the person in your care to familiarize yourselves with the basics concerning how a power of attorney for finances works:

Comments

hanginupnorth

hanginupnorth said...

4 months ago

I was not aware that a person had

to have durable power of attorney to handle a persons finances when they become not able to on their own. Having general power of attorney would not be sufficient. Thanks for the help

Chrise1

Chrise1 said...

8 months ago

My sister has been handling my

80 year old mothers finances for her for a little over a year since my mom started bouncing checks. She was unable to keep track of her finances. My mother is also married to a man who has verbally abused her for the duration if the marriage. My moms bank account Is listed in her name and my sister , but my sister is listed only as IN TRUST FOR. My mom was diagnosed with dementia also at this time last year but about 5 months ago added her husband to her account. Is she legally able to do this when she has been diagnosed with dementia? He also is not allowing us to see or talk to my mother for the last three days. We are communicating her welfare through his daughters who he will speak to. He hangs up on my sister or I. We are going to call adult protection but he has also threatened my sister with forgery on my mothers checking account which my mother said was true when he took her to the bank and requested copies of the checks. She is afraid of him and my sister is afraid she will be arrested. She was carrying out my mothers wishes. Are we able to get durable power of attorney now that a diagnosis of dementia has been stated? This was made by her primary doctor not a psychologist or neurologist. We are calling adult protection tomorrow if he doesn't let us see her but legally I would like to know where we stand.

Later

Later said...

almost 2 years ago