Naming someone to make financial decisions for you if you ever can’t do so yourself is one of the most important choices in your estate plan. That’s what the Financial Power of Attorney (FPOA) is designed to do.
Why the FPOA Matters
A Financial Power of Attorney allows you to name an agent — someone who can act on your behalf in financial and legal matters if you become unable to do so yourself.
This may include:
Paying bills and managing accounts
Conducting real estate transactions
Making investment decisions
Filing taxes and handling legal paperwork
This person may spend significant time managing your affairs. You can also choose to allow them to be compensated for their time, in addition to reimbursing any expenses they incur.
🖋️ Attorney Note
Because this person will have legal authority over your financial matters, it’s essential to choose someone trustworthy who will act in your best interest.
Choosing the Right Agent
The powers granted to a financial agent may be broad or limited, depending on your preferences. Before naming someone, consider:
Do you trust them to manage your finances and legal responsibilities?
Are they financially responsible?
Will they perform the role for free, or do you want them to be compensated?
Have you spoken to them, and are they willing to serve?
🖋️ Attorney Note
If your agent incurs costs while acting on your behalf, they are always entitled to reimbursement. If you want them to be compensated for their time, your FPOA must say so — in some states, compensation is not allowed unless explicitly authorized.
Important Limitations
Your financial agent cannot:
Manage assets owned by your trust (only your trustee can do that)
Make or change estate planning documents
Alter qualified retirement accounts
They act only within the scope defined in your FPOA.
🖋️ Attorney Note
Your agent acting under a power of attorney has no control over decisions involving assets owned by your trust. The trustee of your trust manages assets owned by the trust. Your agent does not have testamentary powers either. They cannot sign new documents into being on your behalf, nor make changes to your qualified accounts.
❗Important
If at any point you’re unsure of your agent’s trustworthiness, or if a conflict of interest arises, you can revoke your FPOA and create a new one.