What is a Financial Power of Attorney?
A Financial or “Traditional” Power of Attorney is a protective measure whereby a person is appointed via a document to serve as the Agent of another if and when they become incapacitated. The Agent will in essence step into the shoes of the person creating the document (this personal is called the “Principal”). The Principal can limit how much authority the Agent has and for how long the Agency will last. However, if no such Power of Attorney exists at the time of incapacity and bills need to be paid, property needs to be handled, etc., then a Guardian may have to be appointed by the Court to handle the affairs of the Principal. This is highly undesirable as appointing a Guardian is frequently a stressful and expensive public hearing, and should be avoided if at all possible.