St. John’s College | Giving | The Power in a Power of Attorney

Giving

The Power in a Power of Attorney

A financial power of attorney is a legal document allowing another person or entity to act on your behalf, including managing your finances and paying bills.

Why let someone else handle these important matters? Instead of giving away power, for instance to the courts, you are actually keeping it—ensuring that when you can no longer handle your affairs, your wishes will still be honored. You assign authority only for the types of transactions you desire, and you can choose whether the power begins now or only if you become mentally incapacitated (a springing power).

If the power begins now and is “durable,” it stays in effect if you become incapacitated. It ends when you die, but you can revoke it at any time. It has no bearing on the distribution of your estate.

A power of attorney must be signed by you and may need to be witnessed or notarized, depending on state law. Your selected agent could be your spouse or child, a financial professional, or an organization such as a bank. Choose someone you trust to honor your wishes, and if you select an individual, name a successor in case the first person predeceases you. If a power of attorney grants the ability to make tax payments, complete and file IRS Form 2848. If it includes the power to sell real estate, the document should include the legal description of the property and may need to be recorded.

Do you need a power of attorney? Preparing one offers peace of mind for you and your loved ones while allowing you to keep control of your decisions.

Please call Barbara Goyette at 410-295-5554, or e-mail us at barbara.goyette@sjca.edu, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.