A Financial Power of Attorney (FPOA) is a legal document that allows you to appoint someone—known as your financial agent or attorney-in-fact—to manage your financial affairs if you become unable to do so yourself. This person is authorized to handle tasks such as paying your bills, managing bank accounts, handling investments, filing taxes, and buying or selling property on your behalf.
When Is a FPOA Used?
The FPOA goes into effect either immediately or at a future point, such as when you become incapacitated and can no longer make financial decisions. You decide how broad or limited their powers are when you create the document.
Considerations When Choosing a FPOA
When choosing a financial power of attorney, select someone you trust to act responsibly and in your best interest. Consider their financial knowledge, reliability, and ability to communicate with institutions. It’s important to discuss your expectations with them ahead of time, ensure they understand your wishes, and confirm they are comfortable with the responsibility.
Steps to successfully complete this form:
- Choose the right form. There are general power of attorney forms that are null and void if you become incapacitated, and durable financial power of attorney forms that stay valid even if you become sick, confused, or incapacitated. Templates can be found through the Arizona Superior Court Self-Service Center, have an attorney draft one more tailored to your situation, or click here for a Durable (Financial) Power of Attorney Form.
- Fill it out carefully and legibly, clearly listing your medical decision-maker and any alternative people you wish to add. Make sure you understand and agree to each section.
- Sign it in front of a qualified witness or have the form notarized. If using a witness, they must be an adult who isn’t your agent, not involved in your health care, not a blood relative, and not someone who inherits from you.
- Keep the original copy safe but accessible where your loved ones and chosen person can easily find it, while providing copies banks, financial institutions, any other entities your person might deal with, and your financial advisor or attorney if applicable.
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