A financial power of attorney is a legal document that lets someone you choose, called your agent, manage your money and property for you, including if you can no longer do it yourself.
A durable power of attorney stays in effect if you lose capacity, which is the point for most people. Some take effect immediately; others only once incapacity is certified. Rules vary by state, and health care decisions use a separate document.
An agent is a fiduciary: they must act only in your interest, keep your money separate from their own, and keep records. The Consumer Financial Protection Bureau publishes free guides for agents.
Banks and brokerages often want to review the document or use their own form before acting on it. Social Security doesn't accept a power of attorney for benefits at all: the agent must apply to Social Security to be named your representative payee.
How to check
Give your advisor and each custodian a copy now and ask whether they will accept it, rather than finding out during a crisis.
Sources
Related terms
Looking for an advisor? Browse fee-only advisors by location or specialty.