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What is a Power of Attorney?

• General Purpose. A financial power of attorney allows another person (called an "attorney-in-fact" in our forms) to control
  finances and other assets of the person who signed the power of
  attorney as principal. Our form is also a "durable power of attorney"
  which means that it remains effected after the principle becomes
  incapacitated. The types of powers conferred by a principle to an
  "attorney in fact" under financial are generally as follows:
  
  
  1. To buy and sell all property (including real estate) owned in whole or part by the principal;
     
  2. To use all credit cards issued in the name of the principal;
     
  3. To withdraw from, deposit to, open, and close all bank, savings, and brokerage accounts owned by the principal;
     
  4. To operate any business venture owned by the principal;
     
  5. To direct the investment of all of principal's assets;
     
  6. To enter into contracts on the principal's behalf;
     
     
  7. To borrow money on the principal's behalf;
     
  8. To make contributions and withdrawals from all of principal's retirement accounts and including IRAs and 401(k)s; and
     
  9. To make all tax elections to which the principal is entitled.
  
  The main purpose for executing a financial power
  of attorney is set up a way to legally transfer and manage your assets
  should you become physically or mentally unable to do so on your own
  (also called a "durable power of attorney"). This becomes especially
  critical in situations where an individual is unmarried. Having this
  document in place could avoid the necessity of your family members
  going to court to get a conservator appointed over your assets in the
  case of physical or mental incapacity. Conservatorship are costly and
  take time for the courts to grant. This form may also be used for a
  temporary granting of financial powers to an agent. An example of such
  a situation would be one where the principal plans to be away on
  vacation but must close a financial transaction (such a real estate
  transfer) while he is away. If you found yourself in such a situation,
  then our form would allow you to grant temporary financial powers to an
  agent only for the duration of your vacation. For more information on
  the issue of a court appointed guardian or conservator, please see this
  pamphlet published by the Missouri Bar Association.
  
  

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